Government takes a U-turn; cuts short deadline of using old Rs 500 notes at petrol pumps and airports

Central government has once again made a turnaround in one of the policies relating to demonetization. According to the announcement made by government today, tomorrow that is December 2 is the last day to use old Rs 500 notes in petrol pumps and to book airline tickets in airports instead of December 15 as announced earlier.

December 2 is the last day to use old Rs 500 notes in petrol pumps and to book airline tickets

Old notes will still be accepted at railway ticketing counters, public sector undertaking buses for purchase of bus tickets and for other utility bill payments at counters of government till December 15 but usage of old Rs 500 note cannot be done for purchase of fuel such as diesel or petrol and airline tickets at airport counters.

For payment of toll at national highways, both old currency of Rs 500 and Rs 1000 was accepted till December 2 while December 3 onwards only Rs 500 had been allowed. After today’s announcement, even this won’t be possible as people will not be allowed to use old Rs 500 notes after December 2.

This announcement will impact in more demand of lower denomination currency as people will be able to pay for fuel and airline tickets only through lower denomination currency or new currency. As new notes of Rs 500 and Rs 2000 have not reached everyone yet, this news may lead to more trouble for some.

Even now in many bank branches, there is limited or no stock of Rs 500 notes. There is a shortage of Rs 100 notes too. Mostly banks are able to give their customers maximum Rs 10000 whereas as per the limit per person per week can take out Rs 24000 and per day Rs 2500 from ATM. Because of anger within some people because of these problems, bank associations have demanded security.

But it was a necessary step too as the facility of using old currency was being misused by many to launder black money.

A similar change in government’s statements related to demonetization policy has been seen in the past. As per government’s first notification, exchange of old currency was allowed till December 30 while the policy was changed later and last date for currency exchange became November 24.

According to central government, the demonetization policy has been accepted by all happily even after being facing some problems.

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