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In a bid to mollify aggrieved foreign diplomats who are facing cash crunch owing to demonetisation, the government Thursday said that the banks have been asked to allow embassy officials with identity cards to withdraw money “on a priority basis”.
The decision was taken after Foreign Secretary S Jaishankar met the Dean of Diplomatic Corps and Ambassador of Dominican Republic, Frank Hans Dannenberg Castellanos, in South Block Thursday.
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However, the principal demand by diplomats to increase their withdrawal limit has not been met so far. Officials said they have apprised the Finance Ministry about the issue and a solution is being worked out.
“MEA has received communications from some embassies about the problems they face in the context of the demonetisation of high value notes. With a view to avoid inconveniencing their operations, the ministry has been in discussion with concerned authorities in the government on this matter,” said the Ministry of External Affairs official spokesperson.
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“The Finance Ministry, as a consequence, is being asked to issue directives to banks to allow embassy officials with identity cards to withdraw money on a priority basis,” he said.
Jaishankar and Castellanos discussed the issues raised by foreign missions and how best to address them.
“We appreciate learning from the Dean that the vast majority of foreign missions understand that the demonetisation exercise is being conducted to combat the menace of black money and tax avoidance. We are confident that the missions would bear with the temporary difficulties that arise in that process, even as we seek to address their concerns,” the spokesperson said.
The meeting came a day after Castellanos, who as Dean represents the voices of 157 foreign missions, said many nations were contemplating reciprocal measures against Indian missions abroad after a Rs 50,000 a week withdrawal cap was fixed for embassies. He had termed the measure a “serious breach” of the Vienna Convention. He had sought Prime Minister Narendra Modi’s intervention.
Castellanos expressed satisfaction over his meeting today. “Although we are waiting for a formal response to the issues brought up by the diplomatic community, I feel very positive and I am very pleased by the time and effort taken by the MEA to listen to all the concerns of my colleagues,” he said.