A weekly withdrawal cap of Rs50,000 (about $742 had been placed on missions in India since Prime Minister Narendra Modi announced on November 8 that currency notes of the value of Rs500 and 1,000 would cease to be legal tender.
The weekly cap was inadequate for the daily operations of the missions and had to be lifted, Frank Hans Dannenberg Castellanos, the dean of diplomatic corps and ambassador for the Dominican Republic said.
“There cannot be restrictions on accessing our own funds,” Castellanos said, adding that it went against the Vienna Convention.
“We have been very patient so far, but now we need solutions,” Castellanos said as the cash crunch caused by the sudden demonetisation showed no signs of abating a month after it was announced.
Castellanos said he was speaking for 157 missions based in India.
He said he had written to Modi and Foreign Minister Sushma Swaraj asking them to intervene.
Embassies were also concerned by the difficulties faced by tourists from their countries who had exchanged money before demonetisation kicked in and were now unable to change the old currency.
Citizens of several countries like Sudan, Iran and Cuba did not have access to international credit cards and they too were facing difficulties, Castellanos said.
Last week, Russian ambassador to India Alexander Kadakin wrote to the Ministry of External Affairs complaining about inadequate funds.
Meanwhile, Modi yesterday defended his decision saying it will lead to long-term gains.
“I always said that the government’s measure will bring a degree of inconvenience but this short-term pain will pave way for long-term gains,” the prime minister said in a string of tweets.
“I salute the people of India wholeheartedly for participating in this yagna against corruption, terrorism and black money,” he said.
“The decision has several gains for farmers, traders, labourers who are the economic backbone of our nation. No longer will the progress and prosperity of rural India be curtailed by corruption and black money. Our villages must get their due,” Modi said.
He said the move was aimed at battling corruption, black money, terror financing and fake currency.
“We also have a historic opportunity to embrace increased cashless payments and integrate latest technology in economic transactions.”
He urged the young to help make India corruption free and ensure more cashless transactions.
“Together we must ensure that India defeats black money. This will empower the poor, new middle class and benefit future generations,” Modi said.
However, opposition Congress vice president Rahul Gandhi said demonetisation was not a “bold but a foolish decision”.
Gandhi said the concept of Paytm – an e-wallet service – meant “Pay To Modi”.
He was speaking to reporters as opposition leaders staged a silent protest near the Mahatma Gandhi statue in parliament complex.
“It is an experiment conjured by the prime minister on individual basis, and every expert who had an opinion about this pushed aside and the prime minister took this so-called bold decision,” Gandhi said.
“But bold decisions can also be a foolish decision and this was a foolish decision, and it has devastated this country,” he said.
“Layoffs are happening every day. I was told L&T has laid off almost a lakh people, farmers are dying, more than a hundred people have died and all this while the prime minister seems to be having fun.
“He is laughing, he is having a nice time while the people of the country are suffering.”
Gandhi also attacked Modi for changing his narrative over demonetisation that the government claimed was aimed at curbing black money, fake currency, corruption and terror financing.
“Now he (Modi) has moved to cashless economy. The whole concept of Paytm is Pay to Modi. That’s the idea behind the cashless economy.
“The idea is that a few people should get maximum benefit from every single cash transaction. That is what is going on,” he said.
“It has damaged the country tremendously and hurt a lot of people and specifically the poor people, farmers, fishermen, daily wage labourers and everyone has been hurt by this.”
Gandhi also accused Modi of running away from a parliament debate.
In Noida, a woman standing in a long queue outside a bank, fainted after suffering an epileptic seizure.
Across the country millions continued to experience hardships.
The woman, apparently in her late 20s, with an Aadhaar card in her hand, suddenly started feeling dizzy, convulsed and collapsed on the road.
Long queues of cash-starved men and women outside banks and ATM kiosks have become ubiquitous across the country.
