I think people were having problems last season with travellors cheques. Not sure how easy it would be to use one of the loaded cards either, as a lot of the shops just don't have the equipment for this kind of thing.

We always take cash.

Don't take TC's we had a problem our last week last year and couldn't change any. I was thinking about getting one if the ICCI cards but think we may just take cash this year although I am always worried if it's lost or stolen we are only covered for about £500 on our insurance . Suppose I will have to make a decision soon

Open a Nationwide account and put your holiday money in it.
Make sure Nationwide are aware of the fact you will be in India and endorse your account accordingly.
Use your debit card to withdraw funds as needed from any ICICI cash point.
A smallish charge is incurred but your money is safe.

We were in Goa in March this year and had no trouble getting TCs changed. We usually use a place down the Baga road.