Mamata slams Centre, says WB suffering due to demonetization

Lambasting the Centre's move to demonetize Rs. 500 and 1,000 notes as part of efforts to crackdown against corruption and black money, West Bengal Chief Minister Mamata Banerjee on Wednesday said there is chaos all over, adding the people have been left helpless.

"Even I am extremely worried. All the banks are closed. There is no way to withdraw money. I am among the tax payers. The situation of people in Bengal is similar to that of mine. We won't be able to purchase goods," she told the media here.

Union Finance Minister Arun Jaitley, however, defended the move and said the government's decision will move the country towards a cashless economy.

Reassuring the people that those having lawful money would have nothing to fear, Jaitley said this is a major setback to the parallel black money economy because a lot of currency operating outside the system will now have to be brought into the banking system.

"The government believes that this decision has been welcomed everywhere. This major step with help India's credibility," he added.

The Finance Minister further said this decision will change the way people spend and keep their money.

"It will take India towards a cashless economy, it doesn't merely push the country in that direction, but significantly pushes it," he added.

He also said the decision is of significant advantage to the economy, adding both the Centre and states will benefit from with more revenue accruing in the economic system.