Indian Overnight Currency Ban Hits Bull's Eye on Terror Funding

New Delhi (Sputnik): India’s demonetization drive is achieving its twin priorities of unearthing black money as turning the screws on fake currency notes that were chiefly used for terror financing. The Indian Government’s anti-terror investigators, the National Investigating Agency (NIA), as well as its Defense Minister, believe that the ban on high-value currency notes has startling impacting those trying to paralyze the Indian economy or fund terror activities.

India has wrapped the demonetization drive in colors of patriotism by claiming it will turn the screws on hostile intelligence agencies pushing in fake currency to bankroll terror activities in India. As public unrest and deaths in bank queues make headlines, the Government on Tuesday fielded Defense Minister Manohar Parrikar to defend its bold gambit.

"Earlier, there were rates – Rs. 500 for stone pelting (on security forces in Kashmir) and Rs. 1,000 for doing something else. PM Narendra Modi has brought terror funding to zero," the Minister said.

NIA officials say that around 80 per cent of fake notes are pumped into India through Bangladesh. "Security agencies will have respite for at least two years till the new notes are forged. We expect to find large volumes of fake notes anonymously dumped throughout India over the next few days," said an official.

Demonetization will also impact the 'hawala channel', used extensively by terrorist organizations to finance terror networks in India. These operators generally stock Rs 1,000 and Rs 500 denomination notes because their volumes were easier to handle than lower denomination bills.