Naxalites and Maoists
Naxalites and such home grown anti social and internal terrorist groups want to destabilise government. They rely on extorted, unaccounted
and ill gotten wealth from various illegal sources. On top of it they use this hard earned money of kidnapped or robbed people to carry out
anti social and anti democratic violent activities that threatens the integrity and sovereignty of our country.
Another benefit of demonetization is that Naxal financing has reduced. Naxalites used to extort money from people and used that money to
illegally run their syndicate and execute violence. They may be left with cash that has become illegal now. Obviously, they must not have had
bank accounts to deposit their cash in the system. Less cash to such internal terrorists means not just monetary benefit but also it would help
in maintaining peace and amity. Naxal affected regions are bereft of development, education, health services and government schemes. If Naxalism
stops, the affected population can have access to normal and peaceful life. Also, the security personnel deployed to curb such acts of violence
can be posted for some more productive and nation building tasks.
These moves have also forced people to disclose their legally earned money and deposit it into banks. The depositors will earn interests and at
the same time their money would be safe. This will also increase banking culture among Indians and formalise the economy. The banks may use the
deposited cash for increasing economic activities such as lending to entrepreneurs which will increase employment in the country. It will open up
a window for naxal families to join the mainstream banking system.
The large cash with the banks will also mean banks have more money to lend and thus home and car loans may become cheaper and thus manufacturing
and real estate sectors may see a boom in the times to come. More people especially the underprivileged may be able to afford their own houses in
the years to come as a result of demonetization.