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A man looks at newspapers with cover stories on withdrawal of Indian 500 and 1,000 rupee notes from circulation, on a pavement in Srinagar November 9, 2016.Reuters

Sacks full of burnt notes were found in Bareilly in Uttar Pradesh a day after Prime Minister announced plans of demonetizing Rs 500 and Rs 1000 denominations of notes in a bid to weed out black money from the economy.

The sacks full of Rs. 500 and Rs. 1,000 notes were reportedly burnt by workers of a company on Parsa Kheda road at CB Ganj in Bareilly, according to NDTV.

Police said that the notes were damaged, cut and then burned and added that they have taken over the remains of the currency and have informed Reserve Bank of India (RBI) officials about the same.

"We are examining the burnt notes to check for their authenticity," Joginder Singh, Senior Superintendent of Bareilly, had said.

In an address to the nation on Tuesday evening, PM Narendra Modi announced the abolition of high-value currency notes from Tuesday midnight in a move to wipe out black money, corruption and counterfeit currency from the nation.

Soon after this, RBI Governor Urjit Patel introduced new currency notes of Rs 500 and Rs 2,000. It will be available in the banks and ATMs from November 11.

The government has allowed medicine shops (supported by prescription from a doctor), fuel stations, railway, bus and air ticket booking agencies to accept these notes for 72 hours, but news reports stated that Indians were inconvenienced as shopkeepers and retailing were rejecting Rs 500 and Rs 1,000 notes due to the shortage of other denominations.