Yadav, who was perceived to be close to BJP during the Bihar assembly polls last year, also demanded making election expenditure and political funding transparent bringing political parties under the Right to Information Act.
He told a press conference that the government should not have introduced Rs 2000 denomination note as high currency notes are used for black money and harm democracy.
"The government went for demonetisation without preparation. It was ill-prepared. It has destroyed small traders and the poor. The rich with black money are not in queue," the Lok Sabha member from Bihar said.
"Political parties should be brought under the RTI and their expenditure and poll expenses should be done only by cheque for transparency," he said, adding that tens of crores of rupees are spent in local polls nowadays.