While cancelling the legal tender character of the existing series of high denomination bank notes of ₹ 500 and ₹ 1,000 denominations w.e.f. the expiry of the 8th November, 2016, exemptions were allowed for certain transactions for the first 72 hours with a view to minimizing inconvenience to the public.  Subsequently, based on feedback received from various quarters, certain more transactions were included for exemption.       

The Government has been closely monitoring the implementation of the decision.  Considering various representations received from different quarters in the matter, it has now been decided that the existing exemptions may be extended until the expiry of 14th November, 2016, with the following modifications / additions to the existing exemptions:

(i)  Payment for court fees will be included in the exemptions.

(ii) The ID proof of customers will be required for transactions in consumer cooperative stores.

(iii) Payments towards utility bills will be restricted to only individuals / households for arrears and / or current bills.  No advance payments will be allowed.

(iv) Payments in toll-plazas of the State and National Highways will be deleted  from exemptions, considering that the Ministry of Road Transport and Highways is separately issuing instructions in this regard.

There is enough cash with RBI.  Supply of cash to Bank branches and ATMs are being stepped up gradually.

Demonetisation exemptions extended with added categories and restrictions, and cash supply to banks increased during transition. The Government extended exemptions to the cancellation of the legal tender character of the existing high denomination bank notes until 14 November 2016, adding payment of court fees, requiring ID for consumer cooperative store transactions, limiting exempt utility bill payments to individuals/households for arrears or current bills (no advance payments), and deleting toll plaza payments from exemptions; the Government also stated that the central bank has sufficient cash and that supply to branches and ATMs will be increased gradually.