India on Sunday refuted accusations made by Pakistan that diplomats in its High Commission in Delhi were not allowed to withdraw their salaries from the bank. “As far as we understand, the matter was between the Pakistan High Commission and a private banking entity. It had nothing to do with the government and has been resolved,” official sources told PTI.

Pakistan had earlier argued that not allowing its officials to withdraw salaries was a breach of the Vienna Protocol. It threatened that it would consider retaliatory action involving the salaries of Indian diplomats if the matter was not resolved.

A private bank, RBL bank, provides salaries to the Pakistan High Commission officials. According to the rules, diplomats do not have to provide a reason for making withdrawals unless they cross $5,000 (approximately Rs 3.4 lakh). Some officials at the Pakistan High Commission alleged that they were asked to produce “letters of purpose” for the withdrawal of any amount.

Since demonetisation, there has been an increased demand for dollars and other foreign currency, reported PTI.