Demonetisation unnecessary and a total failure: Prithviraj Chavan

MUMBAI: Former Maharashtra Chief Minister Prithviraj Chavan today said demonetisation was not needed merely to ensure cashless transactions as he raised questions over the effectiveness of the Centre's move.

"Was there a need for demonetisation just to achieve cashless transactions? Did the black money come out," Chavan said.

"Do not be under the misconception that corruption reduces after ushering in cashless transactions," he said in an interview to a Marathi channel.

"In India, almost 98 per cent transactions take place using cash," he said.

There were no preparations before taking such an important decision, he claimed. The objective with which this decision was taken has not succeeded, Chavan said, commenting on 50-day since Modi announced the decision on November 8.

"Since November 8, the money that came into the banks got 'white'. Then where is the black money," Chavan said. Demonetisation has helped convert black money into 'white', he added.