Hi All,
So after doing research for a few days I gave up and bought a TP-Link WLAN USB (WN722N)
http://www.tp-link.com/en/products/d...TL-WN722N.html
Monitor mode works fine after that. I also did dual boot on a laptop with Kali together with Win 7 Pro and the Edimax WLAN USB dongle with RTL8188CUS chipset works fine on laptop.
The thing is that the ARM version of Kali for Rasp Pi 2 does not work for chipset RTL8188CUS however it works fine if you are booting it up Kali on a laptop.
I hope this helps everyone =) ... Also hopefully ARM Kali can help fix the chipset for RTL8188CUS.