The minister also said the demonetisation of higher currency notes is a step towards making the country an "economic super power".
"Rs 500 and Rs 1000 notes give strength to those patronising terrorism... Prime Minister Narendra Modi has taken away this strength by banning these notes. Fake Indian currency notes are printed in Pakistan and circulated in the country to destroy its economy," Rajnath said at BJP's 'Parivartan Yatra' held in the poll-bound state.
Rajnath said Pakistan was "worried" about the development.
On US elections, Rajnath noted that the President-elect Donald Trump had appreciated Prime Minister Narendra Modi's policies.
"During US Presidential election Donald Trump had said that he would work on politics of Modi. Now he has become the President. We should feel proud," the Home Minister said.
"This initiative was not felt by Pakistan. For improving relations, Modi had accepted telephonic invitation of his counterpart Nawaz Sharif and visited Pakistan but it did not mend its ways," the Home Minister said.
Fake currency notes with face value of Rs 400 crore are in circulation across the country, Minister of State for Finance Arjun Ram Meghwal recently told Parliament, citing a government-mandated study.
The study on Fake Indian Currency Note (FICN) issues, including estimation of FICN in circulation, was conducted by Indian Statistical Institute (ISI), Kolkata under the overall supervision of NIA (National Investigation Agency).
All high quality FICN seized in India and abroad originate only from Pakistan which has created a self sustaining criminal network in the South and South East Asian region for infusing fake India currency notes into India via Nepal, Bangladesh, Thailand, Malaysia, Sri Lanka and United Arab Emirates, according to a senior Home Ministry official.
On OROP, Singh today said, "Neither Army nor soliders want politics. But some persons are playing politics on OROP, which was given by BJP and no other government earlier could give it."
Attacking Uttar Pradesh government, Rajnath said the state government was "not utilising" the money being sent by Centre.
Rajnath said if BJP formed government in the state, it would do away with the system of interview in appointment of fourth class employees and constables and only written examinations would be held.
Union ministers Kalraj Mishra and Manoj Sinha, BJP state president Keshav Prasad Maurya and MP Adityanath also addressed the gathering.
