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Ashmita Chaliha came from behind to enter the second round of with a hard-fought win over Ester Nurumi Tri Wardoyo of Indonesia.
Indian women's doubles duo of Treesa Jolly and Gayatri Gopichand failed to make the cut.
The women's doubles combination of Tanisha Crasto and Ashwini Ponnappa also lost in the pre-quarterfinals.
National champion Chirag Sen lost 15-21, 16-21 to Wang Zheng Xing in the decider.
Prannoy lost in straight games, 21-15, 21-5 in the semifinals.
The Kerala shuttler recovered from a slump in the second game to win 21-11, 17-21, 21-18 against Wang Tzu Wei of Chinese Taipei.
It is learned that the delay in releasing the funds is due to the acute financial crisis and the unprecedented restrictions on treasury payments.
H S Prannoy's campaign ended after he lost to Japan's Kodai Naraoka 9-21, 14-21 in the men's singles quarterfinal.
Prannoy, seeded eighth, will now take on third-seeded Japanese Kodai Naraoka.
Young Indian Priyanshu Rajawat also exited the season's last BWF Super 750 event.
Results 21-30 of 132
