Leading the protest, Gandhi accused Modi of shying away from having a discussion on the issue in Parliament, but stressed that opposition parties will "not let him run away" from both Houses, where "everything will become clear" once the Prime Minister takes part in debate.
Speaking to reporters in Parliament premises, he said the Prime Minister is "having nice time" and has over the past one month "changed his narrative" on the issue while people are reeling under hardships.
Besides Congress, leaders of all opposition parties including TMC, CPI(M), CPI, JD(U), Samajwadi Party joined the protest wearing black band on their arms.
"The Prime Minister took this so-called bold decision.
The bold decision can also be a foolish decision. And this was a foolish decision, it has devastated the country. More than 100 people have died. Farmers, fishermen, daily wage earners have been hit hard.
"He (the Prime Minister) is laughing. He is having a nice time, while the people of the country are suffering," Gandhi said.
"So, he is switching from one issue to another. And we are going to catch him inside the House. He is not going to be able to run inside the House," he said.
Referring to the Prime Minister's cashless economy talk, Gandhi said, "There is this concept of PayTM. Pay to Modi, that's the idea behind cashless economy. That's few people should get maximum benefit from cash transactions."
Gandhi once again demanded a debate in Lok Sabha on demonetisation under a rule which entails voting and claimed some BJP MPs too will support the opposition's demand.
"We know people in BJP will vote in our favour if such debate is allowed. If he (Modi) speaks inside...doodh ka doodh aur pani ka pani ho jayega (everything will become clear)," he said.
On his "Pay to Modi" jibe, Gandhi said he will explain on his allegation inside Lok Sabha if allowed to speak.