New Delhi assures foreign embassies it will look into cash crunch woes
Foreign secretary S Jaishankar has assured diplomatic missions that the government is considering “practical measures” suggested by embassies to ease the cash crunch.black money crackdown Updated: Dec 15, 2016 01:41 IST
Foreign secretary S Jaishankar has assured diplomatic missions that the government is considering “practical measures” suggested by embassies to ease the cash crunch emanating from the demonetisation of high-value notes, but did not set a time frame for arriving at a solution.
Sources said Jaishankar wants the government to address missions’ difficulties on priority basis.
A list of suggestions by various embassies on easing the cash crunch was handed over to the foreign secretary on December 18. They included increasing the weekly embassy account withdrawal limit to the equivalent of $5,000 per week, and allowing diplomats posted in Delhi to draw up to Rs 50,000 in the same time period. At present, embassy accounts are entitled to withdraw just Rs 50,000 per week.
Prime Minister Narendra Modi’s surprise announcement to scrap Rs 500 and Rs 1,000 notes last month sparked chaos and confusion across the country, with millions of consumers queued outside banks and ATMs to change a limited number of old notes for new ones or withdraw cash.
The government said the move was aimed at rooting out black money and corruption.