Frustrated with the lack of cash, an angry crowd reportedly attacked the State Bank of India (SBI) branch at Yerramukkapalli in Andhra's Kadapa district on Friday.
According to reports, they also vandalised furniture and hurled stones, breaking the window panes, before the police rushed to the bank and dispersed them.
There was also a heated argument with bank staff before the violence broke out.
One man was reported to be arrested after the incident.
Police were deployed for the rest of the day to avoid any untoward incidents.
In Andhra, the first day of December began on a bitter note as most people returned disappointed even after standing in queues since early in the morning.
Employees of private firms including IT companies, pensioners, housewives, traders, students and daily wage earners all had the same complaint - low cash or no cash in banks.
The situation was worse at ATMs, with almost all of them closed. A few which opened in Vijayawada, Visakhapatnam, Tirupati and other major towns soon went dry.
With the new Rs 500 note yet to reach the banks in the state, people were facing hardships.
Whatever little amount they are able to draw is in new notes of Rs 2,000, which is of little help due to severe shortage of change in the market.
Andhra chief minister N Chandrababu Naidu has asked people not to panic, and said that the state was monitoring the problem in real-time.
IANS inputs