Thanjavur: As Prime Minister Narendra Modi has now understood that demonetisation of Rs 500 and Rs 1000 currency notes has not achieved the objectives as mentioned by him, he has now changed the tune to cashless society, said former Union Finance Minister P Chidambaram said here on Saturday.

Speaking at a discussion on ‘Demonetisation and Problems Faced by People’ organised by the district unit of the Congress party, Chidambaram said that the exercise had not put an end to black money or funding to terrorists as claimed by Modi, when he embarked upon this ‘misadventure’ on November 8.

“As the Prime Minister has now understood that demonetisation exercise has not achieved his objectives, he has now changed the tune to cashless society,” Chidambaram alleged.

“Total cashless society cannot exist anywhere in the world. In Germany and Austria, 80 per cent is cash transaction. In Australia it is 60 per cent, 50 per cent in Canada, 56 in France and in the U.S. 40 per cent transactions are still in cash,” Chidambaram added.

People should decide whether they want to pay by cash or card. They have to shell out service charges for using credit cards. This is the biggest scam of , Chidambaram alleged.

“While Reserve Bank has to decide on the demonetisation of currency and recommend its decision to the government, here it is vice-versa. The Government decided and the RBI approved it.

Demonetisation was taken arbitrarily and thrust on people by Narendra Modi,” he charged.