New Delhi, Nov 11: In a bid to control the panic caused by the demonetisation of Rs 500 and Rs 1000 notes, the Central government on Friday extended the use of old notes for paying public utility bills.
As people continued to run out of cash, the government extended another 72 hours in the use of old currency notes to pay public utility bills such as electricity bill, property taxes and water bills.
Old notes will also be accepted while making payments of fees, charges, taxes and penalty to central and state governments, including municipalities and local bodies, Economic Affairs Secretary Shaktikanta Das tweeted.
"Government extends existing exemptions with regard to cancellation of the legal tender character of the existing series of high denomination bank notes of Rs 500 and Rs 1,000 denominations until the expiry of November 14, 2016, with certain modifications to the existing exemptions," Finance Ministry said in a statement.
Even though the RBI assured that it had supplied enough cash to banks, there seemed to be no respite as ATMs ran dry and banks were out of cash by afternoon in several places.
Many people reportedly went empty handed as banks ran out of cash.
(With PTI inputs)