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NEW DELHI: In this season of demonetisation, the High Commission for Pakistan here is trying to stave off a cash crunch of an entirely different kind.
The mission has written to India’s external affairs ministry to protest against the policies of the bank where Pakistani officials’ salaries are deposited.
According to Pakistan, the bank has imposed additional conditions for withdrawal of the salaries that the mission officials receive in dollars. Several senior diplomats have refused to withdraw their salaries in protest against the new conditions.
These conditions, which came into effect only last week, make it mandatory for Pakistani officials to fill up additional forms specifying their expenditures and also that they exchange their dollars with the same bank. The officials are upset because the exchange rate is much lower than that offered by the bank.
Pakistan has threatened to do the same with Indian diplomats and officials in Islamabad if the ministry doesn’t get the bank to remove the conditions immediately.
Senior Indian officials denied that there was any specific move against the Pakistani mission.
By arrangement with the Times of India
Published in Dawn, December 4th, 2016
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On DawnNews
Comments (84) Closed
Dec 04, 2016 07:58am
Season of silly moves by India.
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Dec 04, 2016 08:14am
Why can't they switch to a better bank?
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Dec 04, 2016 08:14am
Send all Indian diplomats back.
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Dec 04, 2016 08:39am
Now here, let us bring the CORE issue - Kashmir also. All other Nations embassies are given similar instructions-- may be they will join us in complaints and thus bring the CORE issue to the world thru this route. We all are always begging others (especially US) to mediate, this path may lead - you never know.
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Dec 04, 2016 09:28am
India is ready to accept any conditions.
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Dec 04, 2016 09:43am
Do the same way with their officials in pak.
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Dec 04, 2016 09:48am
The real problem is that even the juniormost Pakistani diplomats are getting paid more than even Ambassadors of some countries which doesn't make sense.
Pakistani diplomats duly withdraw all the money in cash, which Indians suspect gets transferred to Kashmiri separatists.
The real problem is the cash transactions, diplomats are free to spend as much money as they want thru cheques, Debit/Credit cards, online transfers and so on.
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Dec 04, 2016 10:40am
Unnecessary issue!!
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Dec 04, 2016 11:14am
The disbursement of cash by bank to everyone has a limit to withdraw, Excess withdrawal obviously requires declaration for taxation purpose, Rule is rule for everyone living in a single country.Diolomats cannot expect "special" banking facilities.
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Dec 04, 2016 11:24am
India will accept any Pakistani conditions. ......
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Dec 04, 2016 12:19pm
Lets just close our embassy there. Whats the point.
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Dec 04, 2016 01:36pm
@tHE RIGHT LEFT Closing embassy serves no purpose !
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Dec 04, 2016 02:13pm
@tHE RIGHT LEFT try it.
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Dec 04, 2016 03:02pm
@m singh yeah right.
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Dec 04, 2016 03:03pm
@EMp Is there any better bank in India, which can go against the orders of the Indian government ?
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Dec 04, 2016 03:08pm
Call them back or open account with City Bank
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Dec 04, 2016 03:11pm
@Mohajir I am sure, diplomats any where, can use credit cards/debit cards cash cards, t/c's, .. easily, but do any where in the world, (USA and Europe included), the milk man, or the sweeper or the cook, or the home help, or the corner grocery store, or the school canteen, or the beggars,.... accept credit/debit cards, cash cards, travellers checks ?
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Dec 04, 2016 03:24pm
@Mohajir Without cash and especially in India you cannot even purchase the grocery.The real issue is Kashmir and India is continuously creating issues to divert Kashmir issue but it must be very clear to all that without resolving Kashmir issue there won't be any development in Subcontinent.
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Dec 04, 2016 03:29pm
@Salman Syed Why would you need 5000$ for Milkman,sweeper etc ?
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Dec 04, 2016 03:33pm
Make online transfer to Pakistan and withdraw money in Indian Rupees as per your need. Nothing wrong in this way and we find no reason for complaints.
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Dec 04, 2016 03:33pm
@EMp They have to use INR to buy stuff. Can't buy anything in USD.
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Dec 04, 2016 03:44pm
@Himmat, this is exactly what majority of Indians now wish. Let's not have missions either sides, until the time each other feel for it in an atmosphere free from terrortism.
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Dec 04, 2016 03:55pm
This is quite an incomplete view of facts. Bottom-line is that exchange rate and thresholds are matters that are between the bank and diplomats who have opened their accounts in those bsnks. Indian government has nothing to do with it, and they have categorically stated that too.
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Dec 04, 2016 03:55pm
Just do same with Indians in Pakistan and set the 1 dollar rate equal to 1 Pak rupees
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Dec 04, 2016 03:54pm
@Salman Syed Hello dear. For your information they do. Just ask anyone who as been to this country.
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Dec 04, 2016 04:38pm
Cheap, immature, unwarranted, immoral, unethical and uncalled for tactics adopted by the highly eccentric, totally unilateral, grossly self-entered and absolutely nut case movers and shakers in New Delhi against the Pakistani diplomats and their staff officially deputed on their soil.
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Dec 04, 2016 04:51pm
@Salman Syed look like you don't have any idea what you are talking about.
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Dec 04, 2016 05:29pm
@Mohajir also, if they sell dollars in open market, they get higher exchange.
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Dec 04, 2016 05:32pm
Just follow law of land.
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Dec 04, 2016 05:36pm
@Salman Syed such people can be paid in cash. They have not been banned from withdrawing cash, it is just that beyond a point they need to do exchange officially and not run to local black marketeer tout in order to get higher exchange.
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Dec 04, 2016 05:38pm
@Thought do it.... rest will take care of itself. Your donor will tell you what a dollar's exchange rate it :)
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Dec 04, 2016 07:05pm
Why all this nonsense? Why not both countries cut down all relations including diplomatic with each other? & Remain as if the other doesn't exist?
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Dec 04, 2016 07:30pm
@Muhammad LOL! that is most hilarious comment i have read. This shows how good you know India.
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Dec 04, 2016 07:32pm
@zafar They can use their debit card to buy stuff! or even the e-wallets. Even Tea seller accept that. No need to carry cash anymore.
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Dec 04, 2016 07:42pm
Just don't the same with their diplomats. That's how it should work.
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Dec 04, 2016 08:02pm
India is very desperate and could not do anything that it wanted against Pakistan. Now it is using very immature similar tactics against Pakistan. This and other issues like water treaty, business with Afghanistan via air etc. shows considerable frustration on their part.
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Dec 04, 2016 10:08pm
India is deliberately doing all this but will not gain anything. Pakistan needs to take measured and mature actions to keep highlighting Indian atrocities in Kashmir.
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Dec 04, 2016 10:22pm
i think this is not only for pakistan embassy...its applicable for all
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Dec 04, 2016 10:30pm
@Zak from panama
CitiBank is even more stringent in implementing the rules.
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Dec 04, 2016 10:52pm
Good
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Dec 04, 2016 10:54pm
Do the same to Indian diplomats. They only understand this language
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Dec 04, 2016 11:18pm
@Muhammad Not true, you can buy groceries and everything else with card in all cities of India, even in far flung remote areas.
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Dec 04, 2016 11:23pm
One word, Pathetic!
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Dec 04, 2016 11:30pm
@Zak from panama indos work in city bank as well. Just do same to them in Islamabad.
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Dec 04, 2016 11:29pm
@Sonu there is no law of land, it's jungle law in the land.
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Dec 05, 2016 12:04am
INR 24k is withdrawal limited and it applies to Pak officials also...are any officials from developed countries like US, Germany,France or UK complaining?? NO...then how come Pakistanis are complaining when their rupee is half the INR value??
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Dec 05, 2016 12:19am
@Muhammad, Your seem to be not read well. Withdrawing small cash from banks and ATMs is no issue at all. 24000 Rs. Can be withdrawn per week. Why does one need more cash than this? We all common citizens did not need to withdraw more than 6 to 8 thousand for salaries of household servants and petty expenses for the entire month. All other expenses were by card
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Dec 05, 2016 01:35am
Wild imagination at large.@Mohajir
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Dec 05, 2016 01:57am
Do Pakistan even need diplomatic relations with a hostile regime?
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Dec 05, 2016 06:59am
@Dr. Salaria, Aamir Ahmad Don't you think it's better to shut down diplomatic relations between both the countries?
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Dec 05, 2016 08:58am
why cant you use ur credit card for your expenses?? As such withdrawing dollars wont help you as you have to convert them to rupees for your daily expenses. btw, do u have credit card ...sighting your abysmally low credibility..
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Dec 05, 2016 09:08am
Pakistan government is always looking for one or other reasons to complain. Deplorable.
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Dec 05, 2016 09:31am
The Indian PM and his cabinet has gone crazy.
They did not consider the consequences of this stupid move that the media is exposing 24/7 now and the cronies are trying to bandaid the damage.
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Dec 05, 2016 10:03am
What is the problem spending through Debit Card, Credit Card and Online banking. I hope that Pakistan embasy would not be using only 1kg tomato and potato. You stay in delhi, have all educated , able to speak at least Urdu, Hindi and English. Send your staff to Big Bazzar of any KIRANA store where they can pay using Debit Card. Evene this good idea shall be implemented in Pakistan also.
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Dec 05, 2016 10:31am
Why Pakistan Government always threatens to do this or that against India? Why doesn't it take a step first and explain afterwards? The Government's approach baffles an ordinary Pakistani and roundly embarrasses us as a nation.
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Dec 05, 2016 11:27am
India is going through a currency ban restructuring. This curb is not aimed at a specific country. So please do not make it an India- Pakistan issue. We are facing our own problems for a better future. Please appreciate it and act accordingly.
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Dec 05, 2016 03:12pm
Sartaj Aziz should not have attended. a junior guy should have been sent
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Dec 05, 2016 03:45pm
@Salman Syed no serving diplomats would need 1000's of dollars cash to give out to begggers and grocery stores - also in delhi even grocery stores are transiting to cashless - esp in diplomatic areas so cash is not needed ; i am sure such exp will add value to these diplomats- they will learn to live cashless... wish them good
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Dec 05, 2016 04:03pm
@Dr. Salaria, Aamir Ahmad -- Utterly rubbish comment made without understanding the overall impact intended.
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Dec 05, 2016 04:08pm
Modi's stupidity has no limits
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Dec 05, 2016 04:42pm
Its always better for the diplomatic staffs to respect the local laws and not try to get diplomatic immunity in all spares. The Embassy can choose any bank for transferring salary which gives them better rates. Open Market exchange may give better rates but is always risky and may create trouble for the staffs. As some of the sane readers commented, usually the Staffs buy groceries from Super Markets which accepts car payments. The withdrawal restrictions may be for cash with daily limits and those can be met with the limit Indian Government has fixed. What I understand India Government is trying to facilitate more cashless transactions than cash so that tax offenders can be caught.
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Dec 05, 2016 05:12pm
@Li-N-Ja There are four objectives of demonetization; reduce black money,reduce counterfeit, move the society to cash less economy, notes and funds for terrorists. There is no problem to meet honest needs.
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Dec 05, 2016 05:19pm
@Salman Syed The diplomats are living not in small town or villages to face problems due to cash crunch.Meanwhile we transferred salary of Maid, cook, milkman to their bank account
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Dec 05, 2016 05:19pm
@Pak One word brilliant!!
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Dec 05, 2016 07:53pm
law of the land
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Dec 05, 2016 08:34pm
@Himmat Sure take the fight further, instead of resolving some past issues. We all know and understand its politics. So lets just wish that if not better then things atleast remain neutral.
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Dec 05, 2016 09:36pm
Break Diplomatic relations!
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Dec 05, 2016 11:04pm
@Be mature
If you call it frustration then let it be. No country will change their Banking Rules for Diplomats. You cannot call Indian action against Pakistanis unless the rule only applies to Pakistanis,if it applies to entire Indian population then it applies to Pakistanis too. Yes, there was a recent change in laws which may have made life inconvenient for some people.
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Dec 05, 2016 11:18pm
The best course is to permanently close the high commission of Pakistan in India!There is no point in trying to have even a semblance of relations with a bigoted neighbour like India!
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Dec 05, 2016 11:36pm
@Salman Syed It seems that you haven't traveled anywhere other than Pakistan. I've lived in Europe and U.S for more than 15 years. Here in U.S. I pay my cleaning lady, Gardner and cook by check or credit card only. ..... please help yourself and explore the world around you.... world is moving forward and Pakistan is moving in other direction...
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Dec 06, 2016 12:25am
Modi government's brilliant move to curb corruption, eradicate black money and stop funding to terrorists organizations.
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Dec 06, 2016 10:30am
India is trying the things to break the diplomatic relations. We Pakistanis will never change ourselves. We behave like thugs.
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Dec 06, 2016 01:12pm
@Ashraf $5000 is not only for a sweeper or a milkman. It is for a lots of other things as well. My own household expenses for a month are a lot more than $5000. Where do I spend it - go figure.
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Dec 06, 2016 04:18pm
@Mohajir India seems to be suffering from Kashmir phobia. Why you do not let Kashmiris decide their future. It is already 70 years gone, it may take any 70 years, but India have to accept wishes of Kashmiris. But by that time a good majority of indian gigantic population would be living like rates. Thin Think and Think.
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Dec 06, 2016 05:06pm
No one cares about such things when the neighbors treat each other with affinity. America banned bigger than 100 dollars bills of its own for use or even printing while Canadians still use thousand dollars bills. I even take thousand dollars Canadian bills to Pakistan every year.
I wish that India treats Pakistan as America treats Canada.
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Dec 06, 2016 07:02pm
Everyone was facing problem even rich people who spend 1000s in a day are facing problem, high class has purchased usd so shortages are actually there, bank will not like to lose high profile accounts of diplomats irrespective of country.
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Dec 06, 2016 11:57pm
@Mohajir So what if Pakistan pays their staff better. That does not justify setting up new norms.
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Dec 07, 2016 12:00am
Why is the payment in Dollars? All payments to government officials has to be mandatorily in rupees so that they work to strengthen than currency and also fight against counterfeiting.
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Dec 07, 2016 12:01am
@Max Why not, would you not do the same? Better rate is better business.
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Dec 07, 2016 09:25am
Demonetization has ensured there is only a cash crunch. A salaried person like me has never been affected by it as I extensively use my credit and debit cards. Can't the Pakistani diplomats do the same?
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Dec 07, 2016 09:27am
@Salman Syed All banks in India come under the RBI regulations. That include foreign banks like HSBC, Citibank and Standard Chartered.
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Dec 07, 2016 09:55am
@Pak One word... Ignorance..!
All missions are having problems. Every single man on the street has problem. Everyone says Corruption needs to be wiped out not realising that even they are a part of that system. When wiping out begins it will pinch everyone.
Corruption can never be eliminated only its magnitude can be reduced. Is Pakistan devoid of corruption? And this demonitization is a big big experiment and gamble.
If anything it will instill some fear, some conscious before blindly resorting to off record transactions. Over a period of time more people will get into digital payments.
The smart tax evaders will find a way in anyway. But the larger law abiding citizens have a choice to not transact in black. I have paid 50% for apartment purchase - thats Rs 32 lakh in cash. Imagine!
Chinese media reported that they are observing this and will like to learn from this. This article is is not politics but economics and please read it like that.
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Dec 07, 2016 11:12am
India acting like a juvenile delinquent.
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Dec 07, 2016 02:31pm
@Malik There are many special treatments for diplomats world over. And much bigger that this stupid requirement.
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