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Embassies in Delhi unhappy over cash crunch

Embassies in Delhi unhappy over cash crunch

Thursday December 08, 2016 , 2 min Read

Anguished over restrictions on withdrawals by their embassies, many foreign governments are contemplating reciprocal measures against Indian missions abroad, terming the recent events a "serious breach" of the Vienna Convention.

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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 the 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 would be resolved soon and that such action by foreign governments would 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.

Also readHow startups are tackling the demonetisation cash crunch with IOUs


He said he was just expressing the collective view of 157 missions and their disappointment over the government's lack of response. He said he had written a letter to External Affairs Minister Sushma Swaraj and the Chief of Protocol expressing concern over the restrictions on withdrawal of funds in the wake of the demonetisation drive.

I think at the end of the day the buck stops at his (PM) door.. He is the one who has to decide whether diplomats will have the ability to withdraw bigger amounts from their accounts, said the Dean of Diplomatic Corps.