Demonetisation badly hit FICN, hawala trade: Govt

The demonetisation of Rs 500 and Rs 1,000 notes had instantly wiped out Pakistan-printed high quality fake Indian currency notes besides hitting hawala transactions, the Rajya Sabha was informed on Wednesday.

Minister of State for Home Affairs Hansraj Ahir said according to reports, demonetisation also resulted in significant positive impact in most theatres of violence in the country.

"Demonetisation also led to instant extinguishment of Pakistan-printed high quality fake Indian currency notes. It also adversely affected the hawala operators," he said replying a written question.

Ahir said Left Wing Extremism cadres have deposited illegal money into the accounts of the sympathisers or simple villagers.

Nearly Rs 9.8 million were seized from various LWE groups post demonetisation and the red ultras also protested against the note ban drive, indicating their discontentment, he said.

"Since illegally held cash forms the major chunk of terrorist funding, after the demonetisation, most of the cash held with the terrorists turned worthless," he said.

The government had on November 8, 2016 announced demonetising of Rs 500 and Rs 1,000 currency notes.