No old notes for fuel from Saturday, toll collection to resume

However, it has decided to withdraw the facility for use of old 500 notes at airports and petrol pumps from midnight of December 2.

The ministry said that processes of production, dispatch and distribution of currency notes have been continuing and more cash is flowing into the system steadily and digital transactions have also made an impressive progress and are expected to significantly improve during the coming days.

"Now, therefore, as digital transaction options have been increasing across different sections of the economy, it has been observed that the outlets of the oil and gas marketing companies are better equipped to accept payments through digital means," it said while removing petrol pumps from exempted list.

The ministry however clarified that supply of LPG continues to be in the exempted category for the purpose of payment through old Rs 500 bank notes.

While junking old 500 and 1,000 rupee notes on November 8, the government had allowed their use for utility bill payments for 72 hours.

This deadline was extended twice. When the last one was to expire on November 24, government amended it to state that only the old 500 rupee notes could be used for payment of utility bills like electricity and water, school fees, pre- paid mobile top-up, fuel purchase and airline ticket booking.

While old notes will continue to be accepted for other utility bill payments as well as at railway ticketing counters and counters of government or public sector undertaking buses for purchase of tickets till December 15, they will be discontinued for purchase of fuel and airline tickets at airport counters.