The Congress chief, who is in his parliamentary constituency Amethi, took to Twitter to attack PM Modi, alleging he "snatched the Rs 500 and Rs 1000 currency notes from every Indian's pocket and gave it to Nirav Modi, but was neither speaking a word about it nor facing parliament".
"Modi ji has destroyed the banking system of the country," Mr Gandhi said on the reported cash crunch in some ATMs.
He alleged that Narendra Modi did not speak a word "after Nirav Modi fled the country with Rs 1,000 crore".
"The prime minister has not uttered a single word after he made the entire country stand in a queue, snatched Rs 500 and Rs 1000 currency notes from your pocket and put it in Nirav Modi's pocket. He fears standing in Parliament too," he said.
The terror of noteban has gripped the country again as the cash in various banks has gone dry, Mr Gandhi alleged and used the hashtag "CashCrunch" with his tweet in Hindi.
"Understand the deceit of Noteban, your money in Nirav Modi's pocket. Modiji's 'Mallya maya', the terror or noteban is again spreading. The country's ATMs are again empty, what has been done to the country's banks," he tweeted.
Several parts of Andhra Pradesh, Telangana, Madhya Pradesh, Bihar and poll-bound Karnataka have reported shortage of currency and ATMs running down, which the government today attributed to unusual spurt in demand in last three months.
Finance Minister Arun Jaitley said the temporary shortage in certain states is being tackled quickly and that there is more than adequate currency in circulation.
Congress leader Jaiver Shergill said that news is pouring in from Bihar, Rajasthan, Telangana, and Jharkhand that there is no money in the country's banks.
"The Congress party demands that the money that the BJP has earned from cleaning off the banks should be returned and the ATMs should be made operational," he said.
"BJP and friends have stolen the country's money, that's why there is no money in the country's ATMs," he alleged.