People still hoard money, cash-in-hand is 1.4% more than before demonetisation: Chidambaram

Former Union Finance Minister P Chidambaram on Friday lashed out at the Central government over the issue of demonetisation that the government undertook almost two years back.

Chidambaram noted that people still hoardmoney and that the cash-in-hand with people is "almost 1.4% more then what it was on Nov 8, 2016".

"People are less confident of putting cash in banks and more comfortable in keeping cash at home," Chidambaram reacted.

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He further enquired if demonetisation was initiated with an aim to enable people with black money to convert it to white.

"If all has come back to RBI then the logical conclusion is 3-4 lakh crore of black money has been converted to white. So there is a suspicion, in fact, it's a charge, that you devised this demonetisation only to enable people with black money to convert into white," Chidambaram stated.

Meanwhile, Congress president Rahul Gandhi on Thursday also targetted the Modi government over demonetisation stating that demonetisation was a "scam". And that the aim was to take people's money, and put it in the hands of Prime Minister Modi's "crony capitalists".

The crony capitalists, he said, "market" Modi. And in return, Modi gave them money (via demonetisation).

"Notebandi was not a mistake," Gandhi said at a press conference in New Delhi. "It was an attack on farmers and small businesses."