India says to stop over-the-counter exchange of old currency notes

A man displays 500 Indian rupee notes during a rally organised by India’s main opposition Congress party against the government's decision to withdraw 500 and 1000 Indian rupee banknotes from circulation, in Ajmer, India, November 24, 2016. REUTERS/Himanshu Sharma

Thu Nov 24, 2016

India will stop over-the-counter exchange of old currency notes, which were made illegal earlier this month, after midnight on Nov 24, the country's finance ministry said on Twitter.

Earlier this month the government withdrew large denomination notes in an attempt to uncover billions of dollars in undeclared wealth.

Those with old notes will still be allowed to deposit them into their bank accounts until Dec. 31, but not permitted to do outright exchanges.

Foreign citizens will be permitted to exchange foreign currency up to 5,000 rupees ($73) a week, the ministry said.

The government had permitted various exemptions for certain transactions where payment could be made through old 500 rupees and 1,000 rupees notes. These exemptions, with some additions and modifications, will continue until Dec. 15.

($1 = 68.7553 Indian rupees)

(Reporting by Aditi Shah)