Some banks ran out of cash. At others police were called in to manage queues of anxious customers hoping to change their savings for legal tender.
The surprise government move is aimed at tackling corruption and tax evasion.
But many low-income Indians, traders and ordinary savers who rely on the cash economy have been badly hit.
Banks were shut on Wednesday to allow them enough time to stock new notes following Tuesday night's announcement. There are also limits on cash withdrawals from ATMs.

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