The Union government said here on Sunday that the cash crunch faced by Pakistani diplomats here was an issue between their High Commission and a “private banking entity.” The problem has been resolved, it added.
The response came after the Pakistani mission officially lodged a protest with the External Affairs Ministry last week. The mission is planning to hold a new meeting with the bank on Monday.
“As far as we understand, the matter was between the Pakistani High Commission and a private banking entity and had nothing to do with the government and has been resolved,” a source told the media.
Note verbale
The Hindu reported earlier that the High Commission had sent a “note verbale” to the Ministry after the bank refused to encash salary cheques, which jeopardised their functions.
A senior Pakistani diplomat had told The Hindu that the cash-denial was an “unprecedented challenge.”
“The bank is declining our legitimate request to withdraw our own money,” the diplomat added.
However, a source in the Pakistan High Commission refused to support the government’s declaration, saying the final situation would be clear only after they hold a new meeting with the bank on Monday.
“The bank had told us that the cash crunch was because of demonetisation in India. But we insisted that the total refusal to support Pakistan mission’s transactions was a problem independent of demonetisation. As of now, we have agreed to hold a meeting with bank officials on Monday to verify the Ministry’s claims,” a source told The Hindu .
For an early solution
The official said that Pakistan did not want to push the issue any further, and would welcome an early solution with the cooperation of the bank.
Subsequent to the November 8 announcement of demonetisation, diplomatic missions have been facing difficulties due to restrictions imposed on the cash flow needed to perform their duties.