Various controversies related to the current demonetization process have been in the news for the past few days. Inconvenience resulting from the scheme's implementation is ubiquitous. It has now affected the diplomats of the Pakistan High Commission in New Delhi. The diplomats have reportedly refused to take their salaries in dollars from the Indian bank which holds their salary account. Moreover, the commission has stated that this inconvenience shall also be faced by the Indian embassy employed at Pakistan wherein their salaries will also be delayed.
The dispute occurred because according to the rules and regulations, diplomats are not authorized to withdraw amount more than 5000$ at a time. If they intend to do so, they need to provide documentation on purpose of withdrawal. Due to the current shortage of currency, banks have been issuing salaries to diplomats in dollars.
However there has been a drastic increase in the demand of dollars post demonetization plan. RBL, which is a private bank, manages the salaries of Pakistani diplomats. They asked to provide a statement of purpose for these withdrawals much to the discontent of the diplomats in Pakistan. Due to thism Islamabad has directly conveyed its displeasure to New Delhi about this problem. They have demanded to bring immediate changes and let diplomats withdraw their salary as they always have. If not, they will consider this as a breach of Vienna Protocol.
As RBL is facing acute shortage of dollars, Islamabad feels they are being targeted in particular. Both the countries would be hoping to clear this air as soon as possible.
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