Bhubaneswar: Odisha BJP claimed that the demonetisation exercise carried out by Prime Minister Narendra Modi 10 years ago needed to be duly recognised, as it paved the way to end terrorism and Naxalism and also boost the economy, claimed state BJP spokesperson Satyabrata Panda.
Panda made these claims at a press conference Monday on the occasion of the 10th anniversary of the ‘notebandi’ exercise.
The central government November 8, 2016, announced the demonetisation of all Rs 500 and Rs 1,000 banknotes.
“The bold decision taken by Prime Minister Narendra Modi on demonetisation has not only disrupted the flow of cash to extremists but also neutralised the old counterfeit. Demonetisation played a significant role in invalidating currency notes and bringing financial transactions into the formal banking and digital systems,” Panda said.
“In the past, Naxalites dared to abduct district collectors and MLAs in Odisha; however, that situation no longer exists. Demonetisation has made a major contribution toward this change,” he told reporters here.
Stating that unaccounted cash, counterfeit notes, and ‘hawala’ transactions were fuelling corruption and violence, the BJP leader asserted that demonetisation dealt a decisive blow to this entire ecosystem.
He said the contribution of demonetisation in subsequent security operations, developmental initiatives, and economic reforms deserves to be duly recognised and evaluated.
Panda said that demonetisation immediately rendered the high-value counterfeit currency notes, specifically the old Rs 500 and Rs 1000 denominations printed in Pakistan, worthless.
“Following demonetisation, approximately Rs 97.75 lakh was seized from various Maoist groups. In Odisha, significant amounts of now-invalid currency, which had been buried underground by the Maoists, were discovered. This move to disrupt the funding of extremists was part of a comprehensive anti-Maoist campaign,” he said.
He pointed out that when the number of incidents of Naxal violence across the country stood at 1,936 in 2010, no district remains on the list of Maoist-affected areas now.
This is a collective success, stemming from security operations, intelligence coordination, the development of roads and connectivity, rehabilitation, and poverty alleviation, alongside demonetization, Panda claimed.
“In Jammu and Kashmir, the number of attacks and violent incidents perpetrated by terrorists has also dropped from 228 in 2018 to 12 in 2025. Due to the BJP government’s comprehensive counter-terrorism policy, such incidents have declined by 95 per cent. Cutting off terror financing is a crucial component of this policy,” the BJP leader said.
He added that according to Reserve Bank figures, the number of counterfeit notes detected within the banking system declined from 7,62,072 in 2016-17 to 2,29,746 in 2025-26, a reduction of approximately 70 per cent.
He said positive changes were also observed in the tax sector.
In 2017-18, net direct tax collections increased by 18 per cent, and the number of income tax returns filed rose by 25 per cent.
The number of new tax filers grew from 85.51 lakh in the previous year to approximately 1.07 crore. Between November 2016 and March 2017, Rs 900 crore was seized during income tax raids, and approximately Rs 7,961 crore of undisclosed income was declared, Panda said.
Demonetisation and the subsequent scrutiny of bank deposit data contributed to better tax compliance.
A study by the Reserve Bank estimated that unusual cash deposits amounting to Rs 1.6 to 1.7 lakh crore were made into certain types of bank accounts. This data provided an opportunity for further investigation, he said.
