Has demonetisation hit the Naxalites? Doesn't look like
An IB report says that Naxals receive funding from outside the country and by looting.
It was in January that Union Home Minister, Rajnath Singh had said in the Lok Sabha that the Naxals were cash starved due to demonetisation. He said that the decision on demonetisation had left the Naxalites without money which in turn was making it hard for them to operate.

It has been three months now since that statement and Chhattisgarh alone has seen two brutal attacks in which over 38 CRPF jawans have been killed. This basically means that demonetisation has had no effect on the operations of the Naxals.
It is true that the Naxalite-affected villages have fallen from 106 to 68. However, the crux of the matter is that in the existing areas the Naxalites are still strong. First and foremost, Naxals receive funding from outside the country. They also raise funds by looting. Their arms and ammunition according to a couple of Intelligence Bureau reports are being provided by agents of the Inter-Services Intelligence.
The government must recognise that it has failed on several fronts in dealing with the problem. The fact is that the ground level intelligence has failed miserably. The Naxalites, on the other hand, continue to enjoy the support of the locals and have managed to establish a strong local intelligence network.
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