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Govt extends use of Old Rs500, Rs1000 notes to pay utility bills for another 72 hours

The government had earlier said that the scrapped notes can be used to pay utility bills, taxes, penalty and fees to central and state governments till midnight of 11 November

The government of India on Friday extended the use of old Rs 500 and Rs1000 notes for paying public utility bills by another 72 hours.

The government had earlier said that the scrapped notes can be used to pay utility bills, taxes, penalty and fees to central and state governments till midnight of 11 November.

With this extension, people can pay use the old notes at government hospitals, railway ticketing, public transport, airline ticketing at airports, milk booths, crematoria/burial grounds and petrol pumps till November 14.

In addition, The Centre has also extended suspension of toll tax on National Highways till November 14, 2016 midnight, Road Transport and Highways Minister Nitin Gadkari said.

The government’s sudden withdrawal of 500 and 1,000 rupee notes from circulation has caused chaos, with petrol stations and other retailers refusing to accept the larger notes and bank cash machines staying closed.

Two days after the government’s plan to abolish Rs 500 and Rs 1000 notes was announced, people including women and elderly persons had gathered at ATMs in their localities today but were upset after finding that it was yet to be stocked up in the machines.

The machines which were stocked with cash also ran out of it within a short duration as people queued up there from early morning hours.

The unexpected demonetisation of high-value denomination notes  is expected to be wiped out 3,35,000 crore black money. 1,34,000 crore will be added to the banking system, the sources said.

This step by the government is a death blow to the cash component of black moneyin India,” said Robinder Sachdev, the president of   Imagindia Institute.

“Over $50 billion (Rs 3,35,000 crore) of illegitimate cash will be destroyed, and over $20 billion (Rs 1,34,000 crore) of legitimate cash will enter bankingchannels to become legal,” Sachdev said.

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