Bhubaneswar, Nov. 12: The state government today announced that all offices dealing with utility services - power, water and land revenue - would remain open tomorrow and the day after to collect bills from consumers. It also permitted these offices to collect old scrapped Rs 500 and Rs 1,000 notes from customers.

The government ordered these offices, which remain closed on Sunday and the coming Monday for Boita Bandana, to remain open on these two days. The order comes in the wake of reports from across the state that bank ATMs did not function properly and at many places, the machines ran out of cash, inconveniencing customers.

The government today also announced that these offices would accept the demonetised notes. All banks and post offices will also remain open tomorrow and the day after.

Despite claims that normality has been restored in many parts of the state and major cities, business in the twin cities has been badly affected. The most affected are the small traders.

The paucity of currency notes has forced a number of roadside eateries to down shutters.

"People are not coming to buy even vegetables. We don't have enough Rs 100 currency notes, so we too are forced to send them away empty handed," said Pratap Sahu, a roadside vendor near CRPF Square.

Odisha Byabasayee Mahasangha general secretary Sudhakar Panda said business had been badly affected because of the current demonetisations move. "We hardly transact any business as we do not have cash in small denomination. People are coming to us with Rs 500 notes and we do not have change. The problem will persist till the demand and supply gap in floating cash is bridged," he said.

Despite assurance from various banks that their ATMs have started functioning, many such kiosks of nationalised banks and even private-sector banks went dry after a few hours of their opening. Those who reached the ATM kiosks early in the morning were more fortunate as they got the cash before the machines ran dry.

The problem worsened after 11am. Long queues snaked in front of most of the ATMs and particularly in front of SBI's ATM kiosks. Police were deployed at most of the banks as well as the ATMs located in the prime locality of the city.

"I have been roaming across the city to get cash. Most ATMs are not functioning. In many places, ATMs have run dry. Those that are functioning have long queues leading up to them. I could not withdraw any money. I will have to come again tomorrow," said Kananbala Patnaik, 60, a resident of BRIT Colony.

Similar scenes were witnessed across the state. People had to wait for as long as six hours at banks, even in the tribal districts such as Malkangiri and Koraput, to exchange their money.

Beneficiaries of various social welfare schemes, such as old age pension, fear they will not get their pension this month.