Fake Currency Dealers
Another important motive achieved through demonetization is a curb on black money. Pakistan imports more ink and paper than it needs for currency printing for
itself. ISI runs fake currency printing presses in Pakistan which is smuggled into India through Bangladesh and Nepal routes.
NIA studies show that fake currency notes worth rupees 400 crore are in circulation in India and a large portion of them are in the form of demonetized currency notes.
The fake currency will have to be extinguished or brought into the banking system making their detection possible. In addition to that, the new 500 and 2000 rupee notes
have world class security features making their duplication difficult for Pakistan so itís a way to stay a step ahead of the copiers.
Demonetization move by the prime minister widened the tax net forcing people to make pan cards and adhaar cards and pay taxes. Fake currency is no longer available
as a safe option like before and people want to avoid dealing with it. This would have a ripple effect and would reduce corruption and illegal activities in general.
People fear Modi may be taking more steps in future to curb black money and hence may not prefer it.