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Russian Embassy's protest regarding cash crunch: MEA refers matter to Dept of Economic Affairs, say sources

New Delhi: Acting swiftly to the Russian Embassy's protest with Ministry of External Affairs (MEA) regarding cash crunch due to demonetization, the MEA has referred the matter to the Department of Economic Affairs, Finance Ministry, sources said, reported ANI. The Russian Embassy had lodged protest with MEA regarding cash crunch due to demonetisation and Russian Envoy urged government to take immediate steps, quoted ANI citing sources. MEA has referred the matter to Department of Economic Affairs and Finance Ministry, sources added. It is important to mention here that since the demonetisation has taken place, this is the first time any foreign Embassy has protest against the demonetisation policy of the Narendra Modi-led BJP government. Background: On 8 November, the demonetisation of Rs 500 and Rs 1,000 banknotes was enacted by the Government of India. All Rs 500 and Rs 1,000 banknotes of the Mahatma Gandhi Series ceased to be legal tender in India from 9 November 2016, announced Prime Minister Narendra Modi.

Allegations and claims:

The Communist Party of India (Marxist) CPI (M) alleged that the BJP unit in West Bengal had advance knowledge about the impending announcement. They deposited money just before the announcement, alleged CPI (M). Arvind Kejriwal's Aam Aadmi Party also claimed that there had been some leakage regarding the move. Delhi CM Kejriwal questioned how Sanjeev Kamboj, (a BJP leader in Punjab) posted about the ₹2000 notes days before the official announcement. Kejriwal also alleged that a sudden spike in bank deposits between July and September 2016 was also due to information leakage.
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