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 ₹ 500/- and ₹ 1,000/-. There has been a declining trend in the receipt of these old currency notes of ₹ 500/- and ₹ 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for use of ₹ 500/- old notes, were re-examined by the Government and the following exemptions are, therefore, being withdrawn from the mid night of December 9, 2016: 

• 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.

Exemption withdrawal for old high-denomination notes restricts their use for rail and metro ticketing and onboard catering. Withdrawal of exemptions rescinds prior limited acceptance of old high-denomination 500 notes for railway and government/public sector bus ticketing, for payments to on-board rail catering services during travel, and for purchase of suburban and metro rail tickets, effective midnight of December 9, 2016, reflecting reduced receipts of those notes and a policy push toward digital transactions.