There was a "significant positive impact" of demonetisation on most of the "theatres of violence" in the country, the Centre told the Lok Sabha on Tuesday.
"As per the reports of the agencies, the demonetisation of Rs 500 and Rs 1,000 denominations resulted in a significant positive impact on most theatres of violence in the country," Union Minister of State for Home Affairs Hansraj Gangaram Ahir said in a written reply to a question.
He added that since illegally held cash formed a major chunk of terror funding, after the Centre's decision to scrap the old Rs 500 and Rs 1,000 currency notes in November last, most of the cash held by terrorists became worthless.
"The demonetisation also led to an instant extinguishment of Pakistan-printed high-quality fake Indian currency notes. It also adversely affected the hawala operators," said Ahir.
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