http://www.financialexpress.com/india-news/demonetisation-effect-russia-might-apply-cash-withdrawal-limit-on-indian-diplomats-in-moscow/466119/

Demonetisation: Russia protests on cash shortage faced by embassy post noteban

Russia, one of India's strongest and oldest allies on Tuesday
protested strongly against the demonetisation drive in India and said
that it wasn't possible to run a large embassy with the limitation on
cash withdrawal.

By: PTI | Updated: December 6, 2016 7:42 PM

The cash withdrawal limit leaves only Rs 250 cash in the hand of each
of the Russian embassy employees for an entire week. (AP)

Demonetization is taking a toll on Indian diplomacy, with Russia
lodging a strong protest over cash shortage affecting the functioning
of its embassy here and threatening retaliatory action.

Pressing the External Affairs Ministry to intervene to get
restrictions on cash withdrawals by Russian diplomats lifted, its
Ambassador Alexander Kadakin has written to it saying embassy’s normal
functioning was getting impacted with the “inadequate” amount limit of
Rs 50,000 per week.

State Bank of India has informed the Embassy that the cash withdrawal
limit available to the Embassy is now Rs 50,000 per week under the
government of India directives with no exceptions unless otherwise
advised by the RBI, his letter said.

“Such an amount is totally inadequate as regards the embassy’s salary
and operational expenditure requirements,” the letter added.

“We are awaiting a reply from the MEA and hope that this is resolved
quickly. Otherwise, we will be forced to explore other options which
may include raising the issue in Moscow with your Embassy by summoning
Indian Minister Counsellor,” a senior Russian embassy official said
here.

Other retaliatory options may include restriction on the cash
withdrawals for Indian diplomats posted in Russia, the official
indicated.
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