Flow of funds to terrorists choked post demonetisation: Sitharaman

Union Defence Minister Nirmala Sitharaman on Tuesday said the flow of funds to the terrorists was choked due to demonetisation.

"The data shows that the flow of funds to the terrorists has clearly been choked after demonetisation. As a result of this, the number of incidents of stone-pelting in Jammu and Kashmir, from 2017 summers, has come down. Due to lack of funds, they have also attempted bank robberies," she told media here.

Sitharaman's statement comes ahead of the one-year anniversary of the demonetisation drive.

Earlier in the day, former prime minister Dr. Manmohan Singh termed demonetisation as a clear case of 'organised loot and legalised plunder.'

Hitting back at Singh, Union Finance Minister Arun Jaitley said that calling demonetisation loot was not justified, because scams like 2G, CWG and coal blocks allocation during Manmohan Singh's government were loot.

"The difference between the UPA and the NDA is policy paralysis and structural reform. Calling an ethical move like this a loot is not justified. Loot is one that took place in 2G, CWG and coal blocks allocation. As far as ethics are concerned, our point of view is different from that of the Congress. Their primary objective is to serve a family, and our objective is to serve the nation," Jaitley said.

On November 8, 2016, Prime Minister Narendra Modi announced to demonetise 500- and 1000-rupee banknotes with an aim to curb the black money or the shadow economy in the country.