I will be travelling to India in January, and wonder how to cope with the tough access to local cash right now. People recommend using Uber for taxi, but how to proceed when you hire car with driver for several days. Would they accept US dollars as a payment?
Taxis or other usual retailers will not accept US dollars or other foreign currency, unless they are doing an informal currency conversion as a favour to you, obviously with not so good exchange rate. Of course any taxi driver will happily drive you to a proper & real money exchange shop, instead of some informal or back-alley type transaction.
Your best bet would be (and logical) to get US monies converted at real money exchange shops, which there are lots of almost everywhere. Withdrawal limits are only from banks, and you could exchange as much money as you and money exchanger have, and agree.
Most of the exchange shops are run by very business minded people, and for sure they will have enough supply of cash for one tourist.
As with anywhere in the world, you need to be aware of any scams or things related to tourist money exchange business.