Mohanlal in his blog said "I realise that the ban of Rs 1,000 and Rs 500 is for a good virtuous country and so I give a big salute for it".
Terming the decision as Modi's "surgical strike" against corruption and black money, Mohanlal, who is now at Suratgarh, about 300 km from Jaipur for a film shoot, said the Prime Minister's address to the nation on the day of demonetisation showed the signs of a person who had studied India very carefully.
Referring to difficulties faced by people, the actor said, "I understand that above all the immediate inconveniences, it is for a good cause".
The actor said his views should not be seen as that of an economic expert, but the opinion of a common man without any prejudice.
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On long queues in front of banks and ATMs across the country, he said, "People stand in queue in front of cinema theatres, liquor outlets and also in places of worship without any complaint, so there is nothing wrong in standing in queues for a good is my opinion."
BJP National Executive member V Muraleedharan defended the actor's remark and said personal attacks against him cannot be justified.
"Some people were using the remark as a weapon to attack the actor personally and it cannot be justified at any cost," he said.