The Government of India has decided to withdraw the facility to use old Rs 500 notes at the fuel pumps. According to sources, the new rule will be implemented from December 2 midnight.
An official statement on the withdrawal of this facility may be issued today. This decision comes after analysing that the exemption was being misused to launder black money.
A source said, "We have reviewed the situation. Petrol pumps have various options like e-wallets, mobile payments and cards. The cash situation has also improved significantly and there are enough new notes which have been introduced in the system."
The Government of India had allowed the use of old currency notes at fuel pumps to ease the situation. Later it was extended but was limited to only Rs 500 notes.
The reports about the misuse of this exemption had started flowing from the first week itself, but the government decided not to close the window as it will add to the inconvenience of the people due to demonetisation.
Sources stated that there is no reason to continue with it now as the new notes are introduced in the system. But fuel pumps will continue to dispense cash against debit cards. Sources said that they will not interfere with that facility as its an arrangement between fuel stations and banks.