The government issued a circular in this regard in the wake of complaints that some hospitals were not accepting cheques and demand drafts following demonetisation, leading to inconvenience to patients.
Government has authorised only state-run hospitals to accept Rs 500 and Rs 1000 notes from old circulation.
"It is informed that a few cases of non-acceptance of cheques/demand drafts and online payment transfer from customers by certain business houses including hospitals have been reported subsequent to demonetisation of old currency notes of Rs 500 and Rs 1000 from circulation.
Government has also instructed the Chief District Medical officers (CDMOs) to visit the private hospitals and nursing homes in their jurisdiction to inspect that these instruction are being complied with by private hospitals and nursing homes and submit an action taken report.