Thousands of people are demonstrating across India to protest the government's sudden decision to withdraw large-denomination currency from circulation, a move that has caused enormous hardship to millions of people in the country's predominantly cash-based economy.

But the response to Monday's "day of rage" called by opposition parties was patchy, with the protests only affecting daily life in opposition-ruled states.

Nearly three weeks ago, Prime Minister Narendra Modi announced that 500- and 1,000-rupee notes would become worthless overnight and would be replaced by new currency in a bid to stamp out corruption.

Opposition parties have criticized the move, saying the government mismanaged the currency change and that Modi should address Parliament to explain his decision.