Naxals devastated by currency ban, says Rajnath Singh​

Last Updated: Nov 25, 2016, 23:23 PM IST
Naxals devastated by currency ban, says Rajnath Singh​

Zee Media Bureau

New Delhi: The government is trying to assess whether demonetisation of high denomination Rs 500 and Rs 1,000 notes is having any impact on militancy in Kashmir or terror funding in the country.

“I request Director IB to compile a comprehensive report of how demonetisation has hampered terror funding”, said Rajnath Singh at the 51st annual conference of Directors General/Inspectors General of Police of states and UTs and heads of central police organisations being held at the Sardar Vallabhbhai Patel National Police Academy in Hyderabad.

On the impact of currency ban on Naxals, he said that, Naxals are devastated after demonetisation and are trying to get currency exchanged. "We'll stop their attempts", added the Home Minister.

Inaugurating the three-day annual DGPs/IGPs conference, the Home Minister said that healthy competition among different central and state police officials was yielding good results.

He called for closer coordination between central and state forces as it would help in improving security situation in country.

According to The Economic Times report earlier this month, reports, an intelligence officer tracking terror funding in Jammu & Kashmir said hawala channels had run dry after the the scrapping of Rs 500 and Rs 1,000 notes. With no unaccounted cash to fund violence and protests in the valley, the lead trouble-makers have been forced to lie low. For, they no longer have the money to pay the local youths to pelt stones and stage violent protests. 

The funding of all kind of terror operations or mob protests require money was entirely through hawala. Though recently, the NIA launched a probe to track the funding of militants in Jammu and Kashmir through their sympathisers who travel to gulf countries for work.

Interestingly, there has been no major terror attack or mob protest reported in the valley since demonetisation announced on November 8. 

However, new notes of Rs 2,000 were found on two terrorists killed in an encounter in Bandipora in Jammu and Kashmir on Tuesday.

Banks started dispensing new notes two weeks ago, after Rs 500 and Rs 1,000 notes ceased to be legal tender on November 8 in an attempt to check tax evasion and terror funding.

PM Modi, in his televised address to the nation, as he announced the note ban, had said that terror attacks, including those facilitated by Pakistan, often involve counterfeit Rs 500 notes.