Depressed after a financer refused to accept payment in demonetised currency notes, an autorickshaw driver in Telangana immolated himself, the state police said on Tuesday.

Sheik Basheer (35), who had sustained over 80 per cent burns, died at the Nizamabad Government Hospital in Nizamabad town.

The incident occurred in Armoor town of Nizamabad district on Sunday when Basheer went to the financer to repay loans for his vehicle in Rs 500 and Rs 1,000 currency notes.

"Basheer gave a statement to police that the financer did not accept the old currency notes. Afraid of losing the money, he poured kerosene and set himself ablaze," Sub-Inspector of Police Santosh Kumar told IANS.

Basheer was admitted to Nizamabad hospital, where he died on Tuesday.

The police officer said the autorickshaw driver gave the dying declaration before a magistrate.

According to Basheer's family members, he went to the financer to pay the monthly installment of Rs 6,000 towards the loan he had taken for his three-wheeler. They said he had approached several banks to exchange the currency but did not succeed.