The government withdrew use of 1,000 rupee notes for utility bill payments and discontinued use of even 500 denomination notes for services like the purchase of petrol, diesel at petrol pumps as well as for buying air tickets at airport counters.
The old 500 and 1,000 rupee notes can be used for making payments of utility bills like water and electricity and old currency notes can also use for buying mobile recharge and cooking gas.
After the demonetisation announcement on November 8, the government had initially allowed the continued use of old ₹500 notes for a limited set of essential services to ease the transition for the public. These included purchase of tickets for travel on Indian Railways, state-run buses and metro services. However, this exemption was always meant to be temporary. As per the latest circular issued by the Ministry of Finance, commuters will not be allowed to use old ₹500 currency notes to buy tickets for rail, metro and government-run bus services after 10 December.
This move is part of the government’s phased withdrawal of the old ₹500 notes from circulation. The aim is to push people towards depositing the discontinued notes into bank accounts rather than circulating them in the system. Until December 10, travellers had the option to use old ₹500 notes at railway ticket counters, metro stations, and government bus depots to purchase tickets or recharge travel cards. But the window is now being shut in a bid to curb misuse and speed up the process of flushing out invalid currency.
For commuters, this means they will have to switch to valid legal tender — such as the new ₹500 notes, ₹2000 notes, or lower denomination currency — or use digital payment methods like debit/credit cards, mobile wallets, and UPI apps for purchasing travel tickets. The government has urged passengers to make necessary arrangements and avoid carrying old ₹500 notes for transport-related transactions beyond the deadline.
Officials have clarified that no concessions or extensions are likely to be given as enough time has been provided to citizens to use old notes for essential travel. After December 10, attempting to tender old ₹500 notes at ticket counters will not be accepted under any circumstance. People still holding old ₹500 notes are advised to deposit them in their bank accounts or exchange them at designated bank branches before the final cut-off, to avoid being left with invalid currency.
To promote digital transactions amid cash crunch following the withdrawal of old Rs 500 and 1,000 banknotes government on Thursday waived off service tax on credit and debit transactions up to Rs 2,000.
