The government in a decision taken on Thursday stopped the exchange of banned 500 and 1,000 currency notes at banks, effective from midnight of November 24. However, the exchange will be permitted at Reserve Bank counters subjected to the limit of up to Rs. 2,000 per person.
“The Reserve Bank of India advises members of public that exchange of banknotes in Rs. 500 and Rs. 1000 denominations, whose legal tender status has been withdrawn, will continue to be available at the counters of the Reserve Bank upto the current limits per person as hitherto. (However such exchange facility is no longer available at other banks’ counters),” the central bank said in a statement.
Stopping the exchange of banned notes at banks, the government said that the exchange of old currency notes 500 and 1000 denomination “has shown a declining trend”.
“It has further been felt that people may be encouraged and facilitated to deposit their old Rs. 500 and Rs. 1000 notes in their bank accounts. This will encourage people who are still unbanked, to open new bank accounts,” the government said in a statement.
