A farmer in southern India committed suicide fearing she would be left penniless after the government's shock decision to withdraw high denomination notes from circulation, police said yesterday.

Kandukuri Vinoda, 55, had a large amount of cash at her home in 1,000 and 500 rupee notes and panicked that her savings had become worthless when she heard Prime Minister Narendra Modi's surprise announcement on Tuesday.

"The family told us she panicked after hearing about the note ban and hanged herself at her home," local police officer Raj said.

Vinoda from Mahabubabad district, east of Hyderabad city, had sold some land last month and was paid around 5.5 million rupees for it in cash.