Kashmir seems to have become quieter as the paid protesters are seen off the streets due to lack of cash at the hands of separatists and anti-India activists in the valley. As the stone pelters are going unpaid, the number of such incidents have drastically dropped in the valley ever since, claim security agencies.

AFP

According to the Union home ministry, there has been a decline in separatist-instigated violence in the Valley after the surprise demonetisation move.

Defence Minister Manohar Parrikar had on Monday said that the demonetisation has brought the terror funding down to zero.

"Earlier, there were rates: Rs 500 for stone pelting (on security forces in Kashmir) and Rs 1,000 for doing something else. PM has brought terror funding to zero".

AP

Separatist groups like the Hurriyat Conference, and terror outfits like Lashkar-e-Taiba and Hizbul Mujahideen and Jaish-e-Mohammed are known to be using money to lure locals, especially youths to violent protests like stone pelting.

Intelligence agencies say most of this money comes from donations collected by Pakistan based terror groups in the name of Jihad and then smuggled to the valley through hawala rackets before it reaches the separatists.

AP

They are also known to use fake Indian currencies printed in Pakistan to fund such operations.

According to analysts, a number of separatists had large amounts of counterfeit and smuggled money with them in higher denominations mostly in the form of Rs 500 and Rs 1,000. It is believed that they have suffered a massive blow which would take may up to years for them to recover.

Earlier, in a report to government and RBI, intelligence agencies had claimed a few years ago that Pakistan machinery had achieved "zero-error counterfeit capability" in printing fake Indian notes.

This may change as the new currency according to the government has additional security features which is difficult to fake.