Terror funding squeezed after demonetisation: Arun Jaitley in Lok Sabha

Finance minister Arun Jaitley says demonetisation has led to squeezing of terror funds, including in Jammu and Kashmir.

He was responsing to the Opposition questions who sought to corner the government over demonetisation, saying its claims that the note ban would help eradicate terrorism and fake currency has fallen flat on face.

Congress member K C Venugopal wanted to know from the government how much demonetised currency has been deposited in the banks, how many new notes have been printed so far and how much black money has been unearthed.

"In 2008 to 2010 we saw thousands of stone pelters on streets. In last few months, there have not been more than 25-50 or 100 stone pelters on the streets. There is one reason, terror funding has been squeezed," said Jaitley, while replying to a debate on supplementary demand for grants in the Lok Sabha.

He said as a result of demonetisation, terrorists were forced to rob banks for money, and Uttar Pradesh resident Sandeep Sharma, who was arrested for being a member of an LeT module in south Kashmir, was a welder and thus used to break open bank lockers.

OneIndia News (with inputs)