'People are queuing up in large numbers at ATMs to withdraw as much money before they run out of cash. With heavy withdrawals and no replenishments, most ATMs will turn dry by Thursday night or early Friday,' Mamadapur said.

Said Usha Ramakrishnan, who has an account with the State Bank of India in Delhi: 'I was able to withdraw money. But I will have to go to a private bank -- ICICI Bank or something -- to get a pay order. The kind of trouble we used to face earlier isn't there now. But it is irritating.'

The main demands of the striking staff are wage increase, a better social security net to take care of their post-retirement needs and a proper policy for giving jobs to the family members of deceased or disabled employees on compassionate grounds.

The unions have been demanding a 20-percent wage hike, and rejected the offer of 17.5 percent increase made Wednesday by the Indian Banks' Association (IBA) that represents the bank managements.

The government had asked the unions to hold talks with the bank managements and the chief labour commissioner, but the parleys were inconclusive.

'The association is playing with us. When they agreed to 17.5 percent hike initially, they brought in another clause that the pension load should be borne equally,' said N.S. Virk, vice president the All India Bank Officers' Association.

'This is after they signed a memorandum of understanding,' he said.

'We are on strike. Future course of action will be decided by the forum,' said Virk, suggesting that more such agitations would follow if the government and the bank managements do not manage to pacify the unions.