Apart from curbing the accumulation of black money in the economy, PM Modi’s decision to ban ₹500/1000 notes also has a second objective: prevent circulation of fake currency. For years, various entities including terrorists have been pushing fake currency into the Indian economy. By banning high denomination notes, all of these fake notes have been rendered useless.
The RBI has been printing new notes with a whole new set of security features. The Research and Analysis Wing (RAW), Intelligence Bureau examined these notes and confidently stated that the new security features are nearly impossible to replicate.
The RBI has been printing these notes with updated security features in secret for 6 months.
The Intelligence Bureau had informed the RBI of a mint in Peshawar, Pakistan. It was dedicated to the printing of fake Indian currency notes, mostly in denominations of 500 or 1000.
According to the intelligence community, the ISI oversaw the operation of this mint. It pushed about ₹70 crores worth of fake currency into the Indian economy per year through organised networks such as those run by Dawood Ibrahim and Lashkar-e-Taiba (LeT).
After the enforcement of the ban on ₹500 and ₹1000 currency notes, mints like these have been left with no further purpose.
The ban took down a significant source of terror funding in one fell swoop!
News Source: The Times of India