Increase withdrawal limit, exempt foreign travellers: More embassies protest against demonetisation

Increase withdrawal limit, exempt foreign travellers: Diplomats are demanding that the Centre to take pro-active measures to resolve the cash crunch faced by them

With daily transactions remaining affected by the cash crunch following demonetisation of high-value currency, diplomatic offices in New Delhi are finding it increasingly difficult to do business-as-ususal.

Various embassy offices, including that of Sri Lanka, Ethiopia and the Dominican Republic have submitted letters of protest to the Indian government, reported the Times of India on Wednesday.  

Diplomats are demanding that the Centre to take pro-active measures to resolve the issue, lest Indian diplomats living abroad will also be subjected to similar restrictions.

According to the TOI report, diplomatic missions are demanding the Union government to increase the withdrawal limit, make provisions for a separate window at bank branches to cater to their demand and allow exemption of foreign visitors, who are a here for a short while, from cash restrictions.

Russian Ambassador to New Delhi Alexander Kadakin lodged a strong protest with South Block about the cash crunch that his mission has faced since November 9. 

Responding to the concerns raised by the Russian Embassy that the cash crunch was affecting its functioning, the government said it has set up an inter-ministerial task  to ease the problems of diplomats.

The Russians, who rely on State Bank of India, have not been that fortunate with cash withdrawals, leading their envoy Kadakin to write a strongly worded letter to the MEA. Other Central Asian Republics like Kazakhstan have faced similar problems, while Pakistan's embassy had even threatened to issue notices to Indian officials serving in Islamabad if they weren't allowed to withdraw their salaries in American dollars.

In his letter to MEA, Russian envoy Kadakin has complained this his embassy's normal functioning was getting affected with the "inadequate" amount of weekly limit of Rs 50,000. State Bank of India has told the embassy its cash withdrawal limit was Rs 50,000 a week. This, the bank said, was according to the Government of India directives with no exceptions unless otherwise advised by the Reserve Bank.

The Dean of Diplomatic Corps has also raised the issue, as have Ukraine and Kazakhstan.