The government has acted upon the complaints by several embassies that their diplomats were running short on cash after demonetisation. Banks have now been instructed to allow foreign diplomats to withdraw money on a priority basis.
“The finance ministry is being asked to issue directives to banks to allow embassy officials with ID cards to withdraw money on a priority basis,” External Affairs Spokesperson Vikas Swarup said on Thursday, reported NDTV.
Foreign secretary S Jaishankar on Thursday met the Dean of the Diplomatic corps, Frank Hans Dannenberg Castellanos. Castellanos, the ambassador of the Dominican Republic, represents more than 150 envoys in Delhi. He had spoken out strongly on the difficulties faced by diplomats and written to Foreign Minister Sushma Swaraj requesting that the rules be eased.
Earlier this week, Russia had threatened to take ‘counter steps’ and lodge a diplomatic protest with India, saying its diplomats are struggling for cash in Delhi.
Russian Government sources told NDTV that Ambassador Alexander Kadakin wrote to the Ministry of External Affairs on December 2 and threatened to summon the Indian envoy to protest against the Rs. 50,000 a week limit on withdrawals.
In his letter, Mr Kadakin said the limit set by the government is ‘not even enough to pay for a decent dinner’ and totally inadequate for operational expenses.
“How can such a big embassy in Delhi function without cash?” the envoy questioned.
The Pakistani embassy in Delhi had also lodged an informal protest against demonetisation as the embassy staffers faced difficulties in withdrawing money.
