K Vijayalakshmi was standing in line outside the State Bank of India for over an hour when she suddenly collapsed, said a sub-inspector attached to Vuyyuru Town police station.
He said Vijayalaxmi wanted her old Rs 500 notes exchanged for new tenders.
"She was immediately rushed to hospital, where she was declared dead before admission," the SI said, adding that exact cause of her death will be known after postmortem.
Prime Minister Narendra Modi had announced demonetisation of Rs 1,000 and Rs 500 banknotes last Tuesday in a bid to weed out black money.
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