With banks closed in many parts of the country, cash-strapped people started making beeline outside ATMs from early morning but with limited success as most of cash vending machines are running dry.
Scuffle and heated exchanges were reported from ATMs and banks from many parts of the country.
Many sections of the society including small traders, restaurant owners, transporters etc started feeling the heat as the dependence on cash is very high.
Banks are unable to service as heavy rush making it difficult to handle the situation.
After government issued advisory banks have started making special arrangement for elderly and physically challenged.
In a bid to provide convenience to people, the Centre on Sunday eased key restrictions including raising daily withdrawal limit from bank accounts and ATMs as well as increased the amount of old and now defunct currency notes that can be exchanged.
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To augment cash supplies, newly printed hard-to-fake Rs 500 notes were also released in market.
Prime Minister Narendra Modi on November 8 night announced the surprise demonetisation of higher denomination notes.
After a review by Finance ministry, the limit of old and now defunct Rs 500 and 1,000 notes that can be exchanged for freshly minted Rs 2,000 and a new Rs 500 notes was increased from Rs 4,000 to Rs 4,500 on Sunday.
Cash withdrawal limit at ATMs was hiked to Rs 2,500 from Rs 2,000 a day.