Note ban woes force foreign embassies to cut costs, cancel diplomats’ visits

Diplomatic missions across the country are cancelling key delegation-level visits of their dignitaries to India or cutting down their engagements in the wake of the Centre’s demonetisation drive. This is even as the Ministry of External Affairs (MEA) is awaiting the Finance Ministry’s response on the concerns raised by diplomats.

Directive to withdraw cash Vikas Swarup, spokesperson, MEA, said on Thursday that the Finance Ministry has been asked to issue directives to banks to allow embassy officials with identity cards to withdraw money on a priority basis.

“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,” Swarup said. Dean of Diplomatic Corps Ambassador Hans Dannenberg Castellanos from the Dominican Republic, told BusinessLine that “Presidential visits and high delegation-level visits have become difficult. And even if they are happening, some of the embassies are being forced to limit the activities and events around these visits. The day-to-day operations of embassies have taken a huge hit and nothing has yet been resolved.”

He said countries such as Indonesia, Mongolia and a couple of Central Asian countries were forced to cancel some of their visits and events due to the problems arising out of demonetisation.

‘Facing difficulties’ Castellanos said he has not yet received any official response from the Ministry of External Affairs on the letters written by him last month urging the government to address concerns of diplomats and foreigners residing in India who are facing immense difficulties following the government’s decision to ban ₹500/1000 notes.

Last week, the government had increased the limit of withdrawals for diplomats to ₹50,000 from ₹10,000 a week earlier. But that has not helped the expat community much, Castellanos added.

“This is not sufficient amount for the daily expenses and operations of diplomats,” he added.

Castellanos had written two letters so far to the MEA on November 9 and 17. He also held a detailed meeting with Foreign Secretary S Jaishankar on Thursday.

Meanwhile, in a desperate attempt to seek relief, Russia and Nepal have sought direct intervention of the MEA and have taken up the matter with it separately. While Russian Ambassador to India Alexander Kadakin has written to the MEA stating that the functioning of his embassy was getting adversely impacted, Nepal’s central bank — Nepal Rastra Bank — is in constant touch with the Reserve Bank of India.

Task force meeting Meanwhile, the MEA is believed to have sent a series of recommendations to the DEA under the Finance Ministry, the approval of which is still pending. Apparently, the task force entrusted with the job is also meeting on a regular basis, according to sources.

The committee was set up last month after the Dean of Diplomatic Corps approached the MEA with some of the grave concerns and adversities faced by diplomats.

The inter-ministerial committee is headed by an Additional Secretary of the Finance Ministry.

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