India continues to see chaos at its banks and ATM machines, three days after the Prime Minister demonetized the country's 500 ($7) amd 1,000 ($15) rupee notes as part of anti-corruption measures, said a report.

People queued up outside ATM's around midnight to make withdrawals, as they had been shut for 48 hours following the announcement, said a report in BBC.

The initiative, which aims to tackle corruption and tax evasion, has severely affected many low-income indians, traders and ordinary savers who rely on the cash economy.

According to the report, the two high denomination notes accounted for 85 per cent of the cash in circulation.

People will be able to exchange their money at banks between November 10 and December 30.

Banks have extended working hours and deployed additional staff to deal with the rush.