Currency notes issued before 2005 will be completely withdrawn from circulation by the end of the current financial year ending March 31, the Reserve Bank of India (RBI) said Wednesday.
The central bank said from April 1, 2014, public would be required to approach banks for exchanging these notes.
"Banks will provide exchange facility for these notes until further communication," the RBI said in a statement.
The central bank stated that public can easily identify the notes to be withdrawn as those issued before 2005 do not have the year of printing on their reverse side.
The Reserve Bank has also clarified that the notes issued before 2005 will continue to be legal tender.
This would mean that banks are required to exchange the notes for their customers as well as for non-customers.
From July 1, 2014, however, to exchange more than 10 pieces of Rs.500 and Rs.1,000 notes, non-customers will have to furnish proof of identity and residence to the bank branch in which she/he wants to exchange the notes.
"The Reserve Bank has appealed to the public not to panic. They are requested to actively cooperate in the withdrawal process," the statement said.
