Smuggling of fake notes ends after demonetisation
The impact of demonetisation, the minister added, was also being felt by the illegal trade of arms and ammunition, hawala, drugs and opium.
New Delhi: The Centre’s demonetisation drive has had a significant impact on the circulation of Fake Indian Currency Notes (FICN) as its smuggling from international border along with Pakistan, Nepal and Bangladesh has virtually come to a halt.
Minister of state for home Kiren Rijiju said that following the announcement by Prime Minister Narendra Modi on November 8 smuggling of fake currency from these three major sector has completely stopped.
Mr Rijiju claimed that at any given point of time there was at least Rs 400 crore worth of fake currency in circulation in the country and nearly rs 70 crore of FICN was pumped into the economy every year. The biggest source of this fake currency are Pakistan based terror groups and me-mbers of the Dawood Ibrahim gang.
The impact of demonetisation, the minister added, was also being felt by the illegal trade of arms and ammunition, hawala, drugs and opium.
In fact, according to the home ministry sources hawala trade has been badly hit by the demonetisation drive. Till June this year security agencies had seized fake currency worth Rs 12.35 crore, while in 2015 it was Rs 34.99 crore, in 2014 the value was Rs 36.11 crore and in 2013 it was Rs 42.90 crore.
Intelligence sources said the move had also hit terror funding in the country as an estimated Rs 700 to Rs 800 crore is used for terror activities in the country.
Out of this, Rs 350 to Rs 400 crore is used by insurgent groups in the North-East, Rs 300 to Rs 400 crore by the Naxals and Rs 20 to Rs 30 crore by subversive elements in the Kashmir Valley.
In fact, intelligence sources claimed that the “cash rich” Naxal outfits were caught completely unawares by the demonetisation move and were now loaded with old Rs 500 and Rs 1,000 currency notes which are virtually of no use to them. The ministry has directed Naxal-hit states to ensure that the Maoists do not pressur-ise bank officials or villagers to exchange the old currency in their possession. Sources said there was nearly was Rs 4,00,000 crore of black money in circulation in the country which too had been badly hit by the demonetisation of old Rs 1000 and Rs 500 notes.