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Old notes can be used for buying fuel, air tickets only till today

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New Delhi : Petrol pumps and gas stations will stop accepting old scrapped Rs 500 notes from Saturday; neither will one be able to use them to buy the airline tickets after Friday. The government had earlier debarred them from accepting Rs 1,000 notes.

The RBI may also revert to a withdrawal ceiling of Rs 10,000 per day, subject to maximum Rs 24,000 in a week, from the savings bank accounts, the sources said.


The new changes have been effected in a gazette notification issued by the Department of Economic Affairs late Wednesday night.

The scrapped Rs 500 notes will, however, continue to be entertained for buying railway tickets and tickets for buses of government and public sector undertakings.

Through another gazette notification, the government empowered the Reserve Bank of India to fix the cash withdrawals from banks and ATMs “from time to time,” scrapping earlier orders to allow up to Rs 24,000 from savings and up to Rs 50,000 from the current accounts.

It said the withdrawal limits fixed by the RBI shall also be applicable to the traders registered with the Agricultural Produce Market Committee (APMC) markets and mandis.

Though the RBI is yet to issue any orders until 4 PM on Thursday in the light of this notification, sources said it may empower the banks’ branch managers to fix the limit on withdrawals as per the exigency of the cash availability that many are already doing on their own.

The RBI may also revert to a withdrawal ceiling of Rs 10,000 per day, subject to maximum Rs 24,000 in a week, from the savings bank accounts, the sources said.

They said the banks are pressing the RBI to raise the present ATM withdrawal ceiling from Rs 2,000 per day to Rs 5,000 or Rs 10,000 per day, subject to not more than Rs 24,000 in a week as that will reduce the heavy work load on their cash counters. The RBI is consulting the ATM handlers before considering this request, the sources said.

The notification further rescinds an earlier order to the banks to ensure their ATMs and white label ATMS shall also dispense bank notes of denomination of Rs 100 or Rs 50.