The father who lined up to get cash for her daughter's treatment said the bank did not let him enter.
A three-year-old girl died at a private clinic in Uttar Pradesh while her father was standing in line at a bank to withdraw money.
Dharmendra had been told by the clinic that his little daughter, suffering from high fever, should be moved to a hospital for specialized treatment. He went thrice to the bank in three days to withdraw money for travel, but without success.
Dharmendra works as a labourer in Banda, around 200 km from state capital Lucknow.
"The bank did not take my passbook, did not issue me a token, did not let me go inside,' he told NDTV.
He says he begged bank officials to let him withdraw money on priority, but they refused.
Local officials say they are investigating the father's claims and those found guilty will be punished.
"The father says on Friday he did not get any money, on Saturday he told bank officials that his daughter was ill and yet he was not given any money," said Prahlad Singh, a senior official in Banda.
Since the shock ban on Rs 500 and Rs 1,000 notes on November 8, millions have spent long hours at banks and ATMs to exchange or withdraw cash.
In the past two weeks, rural Uttar Pradesh has seen unrelenting queues outside banks, with most running out of cash quickly.