The Indian prime minister, Narendra Modi, has urged Indians to give him more time to resolve a cash crisis that followed the withdrawal of high-value notes, insisting the shock move would benefit the poor in the long run.



His comments came as the government said it was increasing a weekly cash withdrawal limit and taking steps to help people in remote areas access money.

There have been huge queues outside banks and ATMs since they reopened last Thursday, two days after Modi announced that 500 and 1,000-rupee notes, worth around £6 and £12, would no longer be legal tender in a bid to tackle corruption and tax evasion.

Indians rely heavily on cash for daily transactions and those living in rural areas or who do not have bank accounts have been hit particularly hard.

Modi said he had been “pained” by the hardships people were facing, but insisted the move would ultimately benefit poor Indians.

“I am aware you are facing difficulties with 500 and 1,000-rupee notes ban. I understand the inconvenience,” he said at a political rally in Uttar Pradesh, India’s most populous state.

“I am really pained by the inconvenience and that is why I am working tirelessly to help people overcome this situation. I will never let anyone loot money that belongs to India’s poor.”

Banks remained open over the weekend to try to ease the crunch, but many ATMs were out of cash.

The government has said it will take time for the machines to be recalibrated to accept new notes, adding to the general frustration.

The 500 and 1,000-rupee notes can be exchanged for new ones or deposited in a bank account until 30 December, but long queues and a lack of cash has hampered that process.

Modi pledged to crack down on “black money” – vast piles of wealth kept hidden from the tax authorities – when he came to power in 2014.

Analysts have broadly welcomed the latest initiative, but said consumer spending would be likely to dip in the short term as the new notes made their way into circulation.