New Delhi: Intelligence agencies have sounded an alert that Pakistan's spy agency ISI may attempt to convert a large amount of currency into the new denomination notes through different channels.

The intelligence agencies' intercepts suggest that ISI has readied Rs 500 crore to get the amount converted and is in contact with different channels in Srinagar, Dubai, Nepal and Bangladesh.

The Uttar Pradesh and Bihar share extensive border with Nepal and this is one route where counterfeit currency finds its way into India.

According to reports, with demonetization of Rs 500 and 1000 notes, there is a fear that ISI may use channels in Srinagar to convert the currency with banking and non-banking institutions

taking advantage of the unrest in the Kashmir Valley.