The minister also said the demonetisation of higher currency notes is a step towards making the country an "economic super power".
"Rs 500 and Rs 1000 notes give strength to those patronising terrorism... Prime Minister Narendra Modi has taken away this strength by banning these notes. Fake Indian currency notes are printed in Pakistan and circulated in the country to destroy its economy," Rajnath said at BJP's 'Parivartan Yatra' held in the poll-bound state.
"Tuesday was a historic moment and with the ban on these notes, a surgical strike has been conducted on corruption. This can create inconvenience for a few days, but this is certainly going to help the country in becoming an economic superpower," he said here and claimed that "poor are happy" with the decision.
Rajnath said Pakistan was "worried" about the development. On US elections, Rajnath noted that the President-elect Donald Trump had appreciated Prime Minister Narendra Modi's policies.
"During US Presidential election Donald Trump had said that he would work on politics of Modi. Now he has become the President. We should feel proud," the Home Minister said.
He said Modi had invited heads of different countries, including Pakistan, not just for "shaking hands" but to give them a message "of connection through hearts". "This initiative was not felt by Pakistan. For improving relations, Modi had accepted telephonic invitation of his counterpart Nawaz Sharif and visited Pakistan but it did not mend its ways," the Home Minister said.
Fake currency notes with face value of Rs 400 crore are in circulation across the country, Minister of State for Finance Arjun Ram Meghwal recently told Parliament, citing a government-mandated study.
The study on Fake Indian Currency Note (FICN) issues, including estimation of FICN in circulation, was conducted by Indian Statistical Institute (ISI), Kolkata under the overall supervision of NIA (National Investigation Agency).
"As per the study, the face value of FICN in circulation was found to be about Rs 400 crore. It was found the value remained constant for the last four years," Meghwal had said.