Note ban a big scam which should be probed: Chidambaram

Addressing a press conference in Nagpur, Chidambaram said the government cannot merely brush aside the issue by saying the Income Tax department is investigating it.

"There should be a special investigating team to probe how 2000 rupee note get into the hands of individuals," he said.

Chidambaram said the government actually punished the farmers and poor by its move and creating an illusion of cracking down on the rich black money owners.

He said while people stand in queues to get their money, some are laundering money.

Chidambaram said the move of currency ban has been criticised by every economist and every media in the world.

"Ultimately the poor people of the country are being punished," said Chidambaram.

He said the PM is switching from his focus on black money crackdown to cashless economy and focusing on that now.

He said small transactions are always in cash worldwide including in countries like USA and only high value transactions are in cards.

He said major markets and mandis are closed owing to the inconsiderate action of the government.

"How will you move to a digital economy? This is the worst attack on the poor. None of the rich people are concerned. It is the poor who are affected," said Chidambaram.

He said the people must be sensitised that this is an assault on the poor and a meaningless action that would yield no result.

Chidambaram said all the seizures taking place and yielding 2000 rupee notes and people are taking bribe in 2000 notes and so the objectives are not served and instead poor are affected.

He said 65 percent of ATMs have no cash in the country and the pain of the people especially in rural India is indescribable.

He said the confidence in the Indian economy for investors has been severely dented owing to host of measures and one of  it is demonetisation. He said Rs 40,000 crore has been withdrawn by investors in past two weeks.

He said credit growth and green field investments are severely affected.