New Delhi, Nov 24 Nov: In a new development to avoid problems post demonetisation, now people can deposit demonetised Rs 500 and 1,000 notes in post office savings accounts, the Finance Ministry clarified on Wednesday.
“The deposits into Post Office Savings Account are excluded from the bar imposed therein (on deposits of demonetised Rs 500 and Rs 1,000 notes in small saving schemes),” a statement from the ministry informed.
“The government has decided that subscribers may not be allowed to deposit demonetised currency in small savings schemes. Hence, Banks are advised not to accept the old Rs 500 and Rs 1,000 notes for deposits in small saving schemes with immediate effect,” RBI said in a notification.
The small savings schemes include Public Provident Fund (PPF), National Savings Certificates (NSC), Senior Citizen Savings Scheme (SCSS) Account and Kisan Vikas Patra (KVP) among others.
In a surprise move, the Central government announced to scrap legal tender of old notes of Rs 500 and Rs 1,000 on November 8 midnight.
The demonetised notes can still be used at places like government hospitals, petrol pumps, metro ticket counters and for payment of utility bills till November 24.