The Union Ministry of External Affairs on Thursday said that it had written to banks, instructing them to allow foreign diplomats to withdraw cash on a priority basis. The ministry said that it had asked the Finance Ministry to issue directives to banks to allow “embassy officials with IDs” to withdraw money, The Indian Express reported.
“[The] foreign secretary had a very detailed and constructive meeting with [the] Dean of Diplomatic Corps today,” the ministry said in a statement. “We hope the missions will bear with the temporary inconvenience arising out of demonetisation.” The move comes two days after the diplomatic missions of at least five countries – Russia, Ukraine, Kazakhstan, Ethiopia and Sudan – sent letters to the Centre protesting against restrictions on monetary transactions imposed after the demonetisation of Rs 500 and Rs 1,000 notes.
Russian ambassador Alexander Kadakin had written that the restrictions had severely affected the New Delhi embassy’s functioning as the withdrawal limit was not even enough to “pay for a decent dinner in a restaurant”.
The discontinuation of the high-value notes also led to a diplomatic row with Pakistan, with diplomats from the country’s High Commission alleging that they were not allowed to withdraw their salaries from the bank. The diplomats claimed that the move was a violation of the Vienna convention. However, India refuted the allegations and said that while the matter “had nothing to do with the government”, it had been resolved.
Since demonetisation, there has been an increased demand for dollars and other foreign currency, reported PTI. On November 8, Prime Minister Narendra Modi had announced that Rs 500 and Rs 1,000 notes will not be legal tender anymore.
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