Russia warn India over Demonetization , threatens retaliatory action
Author: Desk December 7, 2016
New Delhi: On Indian diplomacy Demonetization is taking a toll.Russia lodging a strong protest over cash shortage affecting the functioning of its embassy here and threatening retaliatory action.
Insistent the MEA to intervene to get restrictions on cash withdrawals by Russian diplomats lifted, its Ambassador Alexander Kadakin has written to it saying embassy’s normal functioning was getting impacted with the “inadequate” amount limit of Rs 50,000 per week.
SBI has informed the 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.
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 first one to complain about the demonetization-induced restrictions. Earlier, the Dean of Diplomatic Corps had also raised the issue with the External Affairs Ministry. Subsequently the demonetization 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 demonetization and was awaiting a decision by the finance ministry regarding it.