An assessment report of the Centre on the impact of demonetisation on terrorist and Maoist-affected areas has claimed that the note-ban exercise has brought down violence significantly.
The report accessed by WION shows that terrorist violence in Indian Kashmir has reduced by 60 percent post demonetisation. It also claims that only one blast took place in the month of December 2016.
This is that time of the year when terrorist violence in Indian Kashmir usually takes a dip because of winters setting in which makes cross-border infiltration through treacherous terrains difficult.
However, the Indian security forces are keeping a close vigil on terrorist activities and their launch pads across the line of control, the de facto border between Indan Kashmir and Pakistan-administered Kashmir, especially after the Indian army in a special operation conducted surgical strikes on the terrorist launch pads across the border last year.
The note also suggested that stone pelting incidents too have reduced because of unavailability of cash which was in use by local area commanders of the terrorist organisations.
The impact also weakened the overground support base, which has helped military neutralise terrorists in a number of operations.
The note also categorically states that the separatist groups like the All Party Hurriyat Conference (APHC) too made relaxation in their shut down calls which enabled the Jammu and Kashmir Education Board to conduct examinations in November. The examinations saw a record 98 per cent attendance.
The intelligence assessment also shows that the skewed real estate market in the Indian state of Jammu and Kashmir also witnessed price correction due to demonetisation.
The assessment by the intelligence agencies also pointed out that demonetisation has brought circulation of counterfeit currency in the valley of Kashmir to a standstill.
The assesment report also revealed that various militant groups, insurgents, separatists, criminals, terrorists, sleeper cells in India's north-east region, which has been affected by insurgency, suffered losses.
It was also brought to the government’s notice that many insurgent groups also left the north-east region with the new Indian currency for safety reasons.
But the Centre feels that the impact of demonetisation has been far more pronounced in the areas affected by Maoist violence.
The Indian intelligence agencies noticed that the senior cadre of the CPI(Maoist) in the Bastar division in the Indian state of Chhattisgarh was reportedly in touch with people to convert old notes into new currency.
The Centre has noted that demonetisation has escalated the pressure on CPI(Maoist) to surrender in large numbers before the authorities since November 8th when the Indian Prime Minister announced the demonetisation of higher denomination currency bills.
The note also mentions that demonetisation has also impacted hawala transactions bringing them down by 50 per cent.
The Bhartiya Janata Party, which is ruling at the Centre, has claimed that after demonetisation, the number of incidents of stone pelting by protesters on security forces in Indian Kashmir has come down significantly.
Indian Kashmir had witnessed an unending spiral of violence after Burhan Wani, a terrorist commander, was shot down by security forces in July last year.