As banks opened on Tuesday after remaining closed on Monday on account of Guru Nanak Jayanti, people in large numbers started queuing up outside them as well as outside ATMs to withdraw valid currency notes from vending machines and exchange demonetised bills.
There was, however, disappointment in store for cash-starved customers again on Tuesday with most of the ATMs running out of the cash.
Many households are struggling to meet their everyday needs after running out of money.
Banks' infrastructure is finding it hard to handle the huge rush resulting in long serpentine queue where average waiting time is 4 hours, especially for exchange.
ATMs will still take another two weeks before they start dispensing new high-value Rs 500 and 2000 notes. For now, they are dispensing Rs 100 notes which make them go dry in a few hours.
In view of rising public anger across the country over limited cash availability, the government eased key restrictions, including raising daily withdrawal limit from bank counters and ATMs as well as hiking the amount of old and now defunct currency notes that can be exchanged.
The limit of old and now defunct Rs 500 and Rs 1,000 notes that can be exchanged for freshly minted Rs 2,000 and new Rs 500 notes was increased from Rs 4,000 to Rs 4,500 per day.
The weekly limit of Rs 20,000 for withdrawal from bank counters has been increased to Rs 24,000. The maximum limit of Rs 10,000 per day on such withdrawals has been removed.