New Delhi faces diplomatic ire over demonetisation

Several foreign diplomatic missions in India are registering its annoyance with the government

Dec. 6: The sudden demonetisation of high-value Indian currency notes and the cash rationing since November 9 has triggered a quaint diplomatic turbulence in both India and abroad with several foreign diplomatic missions in India registering its annoyance with the government and its missions abroad facing NRI wrath.

The latest amongst New Delhi-based foreign diplomatic mission to vent its ire over the cash rationing is the Russian Embassy, which has lodged a strong protest over cash shortage affecting its functioning here.

The Russian Embassy has gone to the extent of threatening retaliatory actions and rationing the availability of Indian mission in Moscow, said Ministry of External Affairs officials.

Seeking MEA’s intervention for to waive the restrictions on cash withdrawals by Russian diplomats, Russian Ambassador Alexander Kadakin has written a letter saying the embassy’s normal functioning has been adversely due to the “inadequate” withdrawal limit of Rs 50,000 per week.

Kadkin wrote to the MEA saying that State Bank of India has informed the Russian Embassy that the cash withdrawal limit available to the embassy is now Rs 50,000 per week under the government of India directives with no exceptions unless otherwise advised by the RBI.

“Such an amount is totally inadequate as regards the embassy’s salary and operational expenditure requirements,” the letter added.

“We are awaiting a reply from the MEA and hope that this is resolved quickly. Otherwise, we will be forced to explore other options which may include raising the issue in Moscow with your embassy by summoning the Indian Minister Counsellor,” a senior Russian Embassy official said here.

Other retaliatory options may include restriction on the cash withdrawals for Indian diplomats posted in Russia, the official indicated. There are approximately 200 staffers in Russian diplomatic mission in the national capital.

There was no immediate reaction from the Indian side on the complaint.

Russia is not the only one to complain about the demonetisationinduced restrictions. Earlier, the Dean of Diplomatic Corps had also raised the issue with the External Affairs Ministry.

It is also understood that some other countries like Ukraine and Kazakhstan have also raised the issue with the ministry.

After the demonetisation last month, MEA had said it has approached Department of Economic Affairs over issues including those related to maintaining sufficient flow of funds to diplomatic missions following demonetisation and was awaiting a decision by the finance ministry.

The Russian Embassy has gone to the extent of threatening retaliatory actions and rationing the availability of Indian mission in Moscow, said Ministry of External Affairs officials