He also expressed concern over "growing incidents of vigilantism" in the country.
"The security situation across the country is bad. Our national security, internal security is worse than it was in the last 20 years.
"The BJP chief ministers and senior leaders give statements which are implemented by the vigilantes on the ground without waiting for the government. All this has created an atmosphere of fear in the country which is a danger to the democratic set up and freedom (of a citizen)," he said.
He said the failure of BJP to rise above personal and party considerations in Jammu and Kashmir had pushed the state to the present position of confrontation.
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"There is political vacuum in the state and no vision to work out a solution to the present unrest and alienation," Bansal said.
"There is want of initiative to convert the anger of youth to hope and to draw them into a position where they consider themselves as stakeholders in a process of peace, stability and development. They (BJP) have no idea as to how to address the issue. Various ministers give different statements," he said.
He also hit out at the demonetisation move.
"45 crore people, including 25 crore labourers and 15 crore daily earners, have been affected by demonetisation. The GDP has also fallen," he claimed.
He said the BJP had promised creation of two crore jobs each year but only one lakh were provided employment last year.
Bansal further said the BJP government earned a windfall of Rs 2,33,000 crore by a reduction in crude oil prices from USD 107.09 to USD 47.42 from May 2014 to May 2017.