Foreign govts unhappy over cash crunch

Anguished over restrictions on withdrawals by their embassies, many foreign governments are contemplating reciprocal measures against Indian missions abroad terming the measures as a "serious breach" of Vienna Convention.
In strong comments, Frank Hans Dannenberg Castellanos, Dean of Diplomatic Corps who represents the voice of 157 foreign missions here, said the "buck stops" at Prime Minister Narendra Modi's door and he should intervene to resolve the issue soon.
"The fact that we cannot access our own funds in our bank accounts is a serious breach of Vienna convention and international diplomatic principles. This is the main constraint of a lot of ambassadors," he said adding the Rs 50,000 a week cap on withdrawal must be lifted.

Castellanos, Ambassador of the Dominican Republic, said a number of embassies upset by India's restrictions were studying the possibility of "reciprocating" similar steps against Indian diplomats in their countries.
At the same time, he hoped the issue will be resolved soon and that such action by foreign governments will not be required.
"I am not saying all governments will do that but there might be governments who are already studying the possibility of raciprocating through Indian diplomats in their countries," Castellanos told PTI.

He said he was just expressing the concensus view of 157 missions and their disappointment over government's lack of response.

He said had written a letter to External Affairs Minister Sushma Swaraj and the Chief of Protocol expressing concern over the restrictions on withdrwal of funds in the wake of the demonetisation drive.
Some big countries may "reciprocate" in the same way with
Indian diplomats posted abroad if they continue to face the problem, Castellanos said, adding many embassies are in touch with their government's on the issue.
Asked specifically whether some countries may really take reciprocal steps, he said, "They say they are discussing with their ministries about the possibility of doing that."
The Dean of Diplomatic Corps said all the embassies are facing difficulties ranging from paying casual labourers and hosting delegations to carrying out their day-to-day activities.

"I am giving you consensus of the problems of all my colleagues. I am giving consensus of 157 missions. Some countries have sent letters (to Indian Government) directly. The Russian Embassy made its letter public. Some embassies sent letters but have not made them public.
"We are foreign missions accredited to India and there is something called reciprocity. We have certain benefits and we provide Indian diplomats in our countries the same benefits," he said.
The diplomat said the Ministry of External Affairs is doing their best and it is for the Finance Ministry to take a call after the Prime Minister approves it.

"We are hoping that it will be resolved in the next couple of weeks. We understand that the whole country is going through the painful situation which may last for an year or two," he said.
Russia, Ukraine, Kazakhstan and a number of other countries have already approached the government on the issue.
Russian Ambassador Alexander Kadakin, in a letter to the government, has already lodged a strong protest over the restrictions on cash withdrawal.
He said citizens of many countries including Iran, Sudan and Cuba, who come in large numbers to India, are facing severe problems as they do not have international credit cards due to certain restrictions on banking systems in these countries.

"As ambassadors, it is our responsibility to ensure that our nationals visiting India do not face any problem," Kadakin said.
After the demonetisation move last month, MEA had said it has approached the Department of Economic Affairs on the issue and was waiting for a decision by the Finance Ministry.