India cash crunch sparks diplomatic row between Islamabad, New Delhi

[shah1398]

India cash crunch sparks diplomatic row between Islamabad, New Delhi
By News Desk
Published: December 4, 2016

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Indian Prime Minister Narendra Modi’s ambitious demonetisation campaign has sparked a new diplomatic row between New Delhi and Islamabad —two south Asian nuclear armed neighbours with strained ties.

The Pakistani High Commission in New Delhi has lodged a formal protest with India’s Ministry of External Affairs (MEA) against refusal of cash to its diplomatic staff by their bankers raising fears of a tit-for-tat response by Islamabad.

Tens of thousands protest against India cash ban

Pakistan would be forced to take similar steps against the Indian mission in Islamabad, unless remedial measures are taken to help Pakistani diplomats posted in Delhi, The Hindu quoted a senior Pakistani official as saying.

While the MEA said it will “look into” the complaint filed by the mission, Pakistani diplomats said the trouble faced by them is not related to demonetisation. “We are finding it difficult to perform our duties as the bank where we conduct our transactions has been refusing to let us withdraw cash. This is an unprecedented challenge as the bank is declining our legitimate requests to withdraw our own money,” said a diplomat.

Banks in India require for diplomats to provide documentation on purpose of withdrawal, for any amount over $5,000, according to Economic Times.

“We have sent a note verbale [note of protest] regarding the issue and hope that MEA will not force us to take a similar step against the Indian mission,” the diplomat added. Diplomatic missions have been facing the brunt of a cash crunch as non-availability of Indian currency is preventing them from executing vital duties.

The Pakistani official went on to say that the concerned bank had not been allowing the diplomatic staff to withdraw cash from their own account, “which is an addition to the hardships we are facing because of the demonetisation.”

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Responding to the issue, an official of the MEA acknowledged the receipt of note verbale from the mission and said, “We have discussed the issue and will look into the complaint of the Pakistan High Commission.” The official said that the Pakistani diplomats remain entitled to their salaries and the problem was likely to be resolved.

This article originally appeared on The Hindu

 

[shah1398]

This is literally the lowest exhibition of diplomatic norms. No such example of any sort can ever be found.

 

[django]

This is what 1000 years of slavery does.

 

[randomradio]

Lol. Pakistani embassies should go digital.

No one can withdraw such a huge amount.

 

[Khanate]

Modi is diverting attention from his spectacular domestic policy failures with these petty moves.

After all, Economists including Larry Summers, Paul Krugman, Amartya Sen, Kaushik Basu, Manmohan Singh, etc. has termed Modi's monetary policy "bad".

Scroll: 'The costs exceed the benefits': US economist Larry Summers on India's demonetisation move
Hindustan Times: Demonetisation gains uncertain, says Nobel laureate Paul Krugman
The Hindu: Amartya Sen terms demonetisation a despotic action
New York Times: In India, Black Money Makes for Bad Policy (Kaushik Basu)
Forbes: Demonetisation Will Cut 2% From India's GDP — Manmohan Singh


Media:
Forbes: Modi's Demonetization Is a Cure Worse Than The Disease For India
Forbes: India's Demonetization Could Be The First Cash Domino To Fall
CNBC: India economic growth to slow dramatically after cash crunch
DNA India: Morgan Stanley, BofA-ML lower India's GDP estimate

 

[randomradio]

Modi is diverting attention from his spectacular domestic policy failures with these petty moves.

After all, Economists including Larry Summers, Paul Krugman, Amartya Sen, Kaushik Basu, Manmohan Singh, etc. has termed Modi's monetary policy "bad".

Scroll: 'The costs exceed the benefits': US economist Larry Summers on India's demonetisation move
Hindustan Times: Demonetisation gains uncertain, says Nobel laureate Paul Krugman
The Hindu: Amartya Sen terms demonetisation a despotic action
New York Times: In India, Black Money Makes for Bad Policy (Kaushik Basu)
Forbes: Demonetisation Will Cut 2% From India's GDP — Manmohan Singh


Media:
Forbes: Modi's Demonetization Is a Cure Worse Than The Disease For India
Forbes: India's Demonetization Could Be The First Cash Domino To Fall
CNBC: India economic growth to slow dramatically after cash crunch
DNA India: Morgan Stanley, BofA-ML lower India's GDP estimate

Do you know that the Vajpayee govt created 60 million new jobs in 5 years while the UPA govt has created only 15 million in 10 years? With most of the 15 million being spillover from the previous 5 years of NDA's rule. The period from 2008 to 2014 created only 2 million jobs under the great Manmohan Singh. The first 6 months of this year created less than 200,000 jobs. It was that bad. And the idiot has the audacity to talk about 2% drop in growth after having killed the entire economy. Haha.

Even though India was growing really fast, it was a 'jobless growth'. So only the rich were getting richer and richer. And this was entirely done through cash, through stock market and retain market which saw a lot of black money going in.

The only way to fix our economy for sustainable growth is to start creating jobs again. Modi will stick import duties on capital goods and have those manufactured in India itself, at least for our consumption. For that he needs money, and demonetization gave him that money.

 

[Khanate]

Do you know that the Vajpayee govt created 60 million new jobs in 5 years while the UPA govt has created only 15 million in 10 years? With most of the 15 million being spillover from the previous 5 years of NDA's rule. The period from 2008 to 2014 created only 2 million jobs under the great Manmohan Singh. The first 6 months of this year created less than 200,000 jobs. It was that bad. And the idiot has the audacity to talk about 2% drop in growth after having killed the entire economy. Haha.

Even though India was growing really fast, it was a 'jobless growth'. So only the rich were getting richer and richer. And this was entirely done through cash, through stock market and retain market which saw a lot of black money going in.

The only way to fix our economy for sustainable growth is to start creating jobs again. Modi will stick import duties on capital goods and have those manufactured in India itself, at least for our consumption. For that he needs money, and demonetization gave him that money.

I guess everyone is stupid and colluding against the genius Modi.

Manmohan Singh predicted a negative forecast and it was followed by Morgan Stanley, Bank of America, Fitch lowering their estimates of India's GDP growth. So he was right but then what do Larry Summers, Amartya Sen and Paul Krugman know about Modiji's genius demonetisation plan?

 

[abc123xyx]

ask them to use the plastic money , e-walet..

I cant understand why we have any relations with this filthy country

because its in your intrest...

 

[xyxmt]

because its in your intrest...

True at least you make us feel better about our self.

 

[randomradio]

I guess everyone is stupid and colluding against the genius Modi.

Manmohan Singh just gave a negative forecast and it was followed by Morgan Stanley, Bank of America, Fitch lowering their estimates of India's GDP growth. So he was right but then what do Larry Summers, Amartya Sen and Paul Krugman know about Modiji's genius demonetisation plan?

And a lot of them have given a positive indication post-demonetization also.
There are better people available for that.
Like the head of India's Industry.
http://economictimes.indiatimes.com...short-term-india-inc/articleshow/55640155.cms
Sharing similar view on demonetisation, Ficci President Harshvardhan Neotia too said that it will have a short term impact on the economy.

http://www.cnbc.com/2016/11/21/indi...sts-say-as-growth-expected-to-take-a-hit.html
But analysts argue the unseen impact of the government's decision to wipe out 86 percent of the total value of currency in circulation to fight corruption and counterfeiting goes deeper and could see short-term pain for India's economic trajectory but eventual long-term gains.

I don't think people have yet understood the importance of the banks holding $200B+ in hard currency now.

The demonetization effect is temporary.

Let me explain it in a simpler way.
Paul Krugman: He says the gains are uncertain.
Fact: He doesn't know what the govt has planned after Jan. The govt knows what it's doing, but because of secrecy, no one else knows what's going to happen. The future is uncertain to the masses, not the core leadership.

Kaushik Basu: Same as Krugman.

Larry Summers: Same as Krugman.

Amartya Sen: Undermines currency, banks etc.
Fact: New bank accounts opened
http://www.dnaindia.com/money/report-with-30-lakh-new-acs-banks-get-demonetization-push-2278249

Manmohan Singh: Blah, blah, 2%, blah, blah.
Fact: Opposition idiot. He shaved off 5% in growth for more than half a decade.

This is my quote on another forum which holds true.
All such articles always talk about the negative effects of demonetization, which is all mostly true. But none of them say that this entire exercise is dependent on what the Modi govt does next, from Jan onwards.

The fact is demonetization is just step 1. We are yet to see step 2, 3, 4 etc. Don't forget that this entire move is backed by the RBI. Nobody knows India's economy better than the RBI. And nobody controls India's economy better than RBI. Not Amartya Sen, not Basu, not the foreign analysts, no one. That's why people trust in the demonetization. RBI is the controller of this move, while Modi is merely the face of it, the guy who's allowing the RBI to take back full control of the economy. The next best indication is India's industrial big wigs, they have all supported demonetization completely.

The FMCG says "no lasting impact".
http://www.livemint.com/Money/O16Oy...tion-and-FMCG-industry-no-lasting-impact.html

Real Estate says it will be fine.
http://www.dnaindia.com/money/repor...t-no-scope-for-correction-says-credai-2277276

Most important, CII backs it.
“Masterstroke,” echoed the Confederation of Indian Industry (CII).
http://knowledge.wharton.upenn.edu/article/demonetization-india-will-pay-price/

Crisil:
“[The demonetization] move could change the face of the Indian economy.”–Crisil Report

 

[NirmalKrish]

Modi is diverting attention from his spectacular domestic policy failures with these petty moves.

After all, Economists including Larry Summers, Paul Krugman, Amartya Sen, Kaushik Basu, Manmohan Singh, etc. has termed Modi's monetary policy "bad".

Scroll: 'The costs exceed the benefits': US economist Larry Summers on India's demonetisation move
Hindustan Times: Demonetisation gains uncertain, says Nobel laureate Paul Krugman
The Hindu: Amartya Sen terms demonetisation a despotic action
New York Times: In India, Black Money Makes for Bad Policy (Kaushik Basu)
Forbes: Demonetisation Will Cut 2% From India's GDP — Manmohan Singh


Media:
Forbes: Modi's Demonetization Is a Cure Worse Than The Disease For India
Forbes: India's Demonetization Could Be The First Cash Domino To Fall
CNBC: India economic growth to slow dramatically after cash crunch
DNA India: Morgan Stanley, BofA-ML lower India's GDP estimate

Why do you care? it's our government, our economy, our people and our internal affairs! First keep your house in order first before advising us.

As for pak staff unable to withdrawn cash, give them USD or traveller's cheques, credit cards, apple pay, google wallet... its endless

 

[war&peace]

Pakistan...just do the same...
But you won't

 

[halupridol]

Banks in India require for diplomats to provide documentation on purpose of withdrawal, for any amount over $5,000, according to Economic Times.

Lol,,,inko credit cards,,digital wallet ya paytm account bana do,,,sath me in honhar diplomats ko ye bhi bata dena ke $4999 withdraw kiya ja sakta hai without the documental jhamela

 

[Skull and Bones]

Make them stand in the line, no special privileges for them.

 

[Logicaldude]

I cant understand why we have any relations with this filthy country

This is what 1000 years of slavery does.

@The Eagle here you may want to delete my post pointing out disgusting language by your boys as you did yday. After all these may be think tank material.