Currency notes issued before 2005 should be completely withdrawn from circulation after March 31, the Reserve Bank of India advised banks on Wednesday.
“From April 1, 2014, the public will 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 notification.
It further stated that the public can easily identify the notes to be withdrawn as the notes issued before 2005 do not have on them the year of printing on the reverse side.
The central bank 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 1000 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.
Appealing not to panic, the people are requested to actively co-operate in the withdrawal process, RBI said.