Nitish Kumar makes a U-turn, questions benefits of demonetisation

Bihar Chief Minister Nitish Kumar on Saturday said that though the Modi government's demonetisation move was a "courageous step", he questioned the benefits of the Centre's much-hyped move.

Speaking bank officials on Saturday, Kumar said,''You(banks) are very particular in recovering debts from small people but what about those powerful people who take loans & disappear? It's surprising that even the highest officers are unaware. Banking system needs reform, I am not criticizing,I am concerned.''

''I was a supporter of demonetization, but how many benefited from the move? Some people were able to shift their cash from one place to another,'' Kumar said at a meeting.

His comments came on a day when the party was celebrating the completion of four years of Modi government at the Centre.

Nitish Kumar's party JD(U) is a BJP ally and runs a coalition government in Bihar.

However, this is the first time that Kumar, who is also president of the Janata Dal-United (JD-U), a Bharatiya Janata Party (BJP) ally, has questioned the demonetisation move of the Narendra Modi-led National Democratic Alliance (NDA) government.