New Delhi: Since the demonetisation of high currency notes terror funding has come down to zero and there hasn't been stone-pelting on security forces, Defence Minister Manohar Parrikar said on Tuesday.
He thanked Prime Minister Narendra Modi for the "daring" move, which, he said, will also help clamp down on the narcotic drugs.
Here is how it will affect terror operatives, Naxal activities and Kashmir valley:
HOW DEMONITISATION WILL NUKE TERROR ACTIVITIES?
- Terror operatives store money in the form of big denomination currencies and that money will remain just a piece of paper now
- Demonetisation has come as a shocker for hawala and smuggling transactions, largely responsible for terror financing
- It will also hit hard, albeit temporarily, the circulation of FICN, the prime vehicle for terror funding in India
- Around 90% of the fake Rs 500 and Rs 1000 notes come in India from ISI and its associates in Pakistan and demonetisation will impair their capacity to fund terror in India
- It will give relief to national security establishment as most terror outfits take the black money route to fund their training, pay sleeper cell and arms procurement
WHY DEMONETISATION IS GOOD FOR THE KASHMIR VALLEY?
- Incidents of stone-pelting have reportedly reduced drastically in the Valley ever since demonetisation announcement
- With terror sponsors running short of big currency notes analysts say situation in the Valley will improve drastically in days to come
- In the past, several complaints had cropped up that separatists were paying stone-pelters and other anti-national elements
HOW IT WILL HIT NAXAL ACTIVITIES?
- Naxals are likely to suffer as they may struggle to deposit the demonetised cash which experts say runs in hundreds of crores
- Most of the cash Naxals hold are in big denomination notes which they hide deep inside the forests
- News reports quoting sources say Naxals have stashed more than Rs 7,000 crore in Bastar region alone
- Security agencies in Naxal hit areas are reportedly keeping an eye on bank branches, post offices and ATMs as they feel Naxals may use proxies to deposit these sums in the banking system
- Demonetisation has severely handicapped their capacity to procure firearms, ammunition, medicines, commodities of daily use and pay salaries to cadres