Exemption withdrawn for usage of Rs 500 old notes at railways

Last updated: 10 December 2016


Government withdraws exemptions given for the use of Rs.500/- old notes, from the mid night of December 9, 2016, for making payments at railway ticketing counters, ticket counters of Government or Public Sector Undertakings buses for purchase of tickets; For making payments to catering services on board, during travel by rail; and For making payments for purchasing tickets for travel by suburban and metro rail services. 

Government has been reviewing the different operational aspects of the matters related to the cancellation of the legal tender character of old high denomination notes of Rs.500/- and Rs.1,000/-. There has been a declining trend in the receipt of these old currency notes of Rs.500/- and Rs.1000/-. Further, a number of steps have been taken for promoting digital transactions. 

Keeping the above in view, the exemptions that have been given for use of Rs.500/- old notes, were re-examined by the Government and the following exemptions are, therefore, being withdrawn from the mid night of December 9, 2016:

1. For making payments at railway ticketing counters, ticket counters of Government or Public Sector Undertakings buses for purchase of tickets;

2. For making payments to catering services on board, during travel by rail; and

3. For making payments for purchasing tickets for travel by suburban and metro rail service




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.



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