Talking to reporters here, he said the Union Home Ministry had given directions through video conferencing to the Chief Secretary of Puducherry that digital banking should be introduced in Puducherry "which has been selected to become a model state for cashless transaction on a pilot basis."
"We will not accept anything sought to be imposed on us as practical difficulties had already been felt by the people and bank account holders after demonetisation", he said.
Stating that he had spoken over phone to the Union Home Minister Rajnath Singh earlier in the day and conveyed his ministry'sstand that "digital banking could not be resorted to at the drop of a hat".
"Whenever any scheme is not acceptable to the people the elected ministry too would resist it and hence I have made it clear to the Union Home Minister that digital banking could not be resorted to at the drop of a hat", he said.
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He said the Union Home Minister had told him that he would take up the matter with the Prime Minister.
People particularly traders, businessmen, daily wage earners and labourers were suffering a lot due to shortage of adequate cash in banks and ATMs, he said.
He said he would meet Prime Minister Narendra Modi on December 23 at Delhi and explain to him the practical difficulties the people faced in Puducherry.
The revenue flow to the state exchequer has come down after demonetisation, he said.