Lucknow, Nov 9 (IANS): A day after Prime Minister Narendra Modi announced the demonetisation of Rs 500 and Rs 1,000 currency notes, chaos and confusion reigned on Wednesday in many parts of Uttar Pradesh.

Police were deployed in many markets and at petrol pumps and shopping malls as people clashed with shopowners who refused to accept currency notes of Rs 500 and Rs 1,000 denomination.

Many busy markets were deserted on Wednesday as people chose to stay away. A woman died of heart attack in Kushinagar when she could not withdraw cash from her bank as it was closed.

Lucknow Inspector General of Police A. Satish Ganesh went around many petrol vends along with police force to pacify the general public and to ensure that owners of business outlets followed the government instructions on the issue. 

At some places, agitated people indulged in sloganeering against Modi over the issue. A few persons even burnt an effigy of the Prime Minister at Jhundpur in Meerut, the state police said. 

There was a late-night rush on Tuesday at jewellery shops and retail outlets as people sought to buy jewellery or other things to get rid of currency notes of Rs 500 and Rs 1,000 lying with them.

The Uttar Pradesh Director General of Police has written to police officials across the state to step up vigil and ensure there is no law and order issue as a fallout of the Centre's decision.