Cash crisis grips Afghan refugees living in India | Economic Times

Refugees have been forced to depend on relatives from the US, UAE, UK, Germany and Canada for sustaining their livelihood as Afghanistan’s banking system has stopped functioning. ATMs across Afghanistan have been empty for days and money transfer firms such as MoneyGram and Western Union have halted operations too.Even relatives and friends of the refugees in India who have hosted them do not have a bank account as rules don’t permit it. Many of them said money changers no longer accepted afghani even in places such Bhogal and Lajpat Nagar which have a large number of Afghans.“Western Union and MoneyGram have suspended their operations. People depend on relatives in the UK, US and Canada to send them money. In the last few days, many of them have received ₹8,000 to ₹10,000 from their kin,” said Awdesh Kumar who runs a Western Union transfer counter in Lajpat Nagar. Vijay Pokhali, a money changer in Lajpat Nagar said most Afghans have afghani 1,000 notes and moneychangers were reluctant to accept them since the exchange rate was very unstable. “Nobody knows what changes Taliban will make to the banking and financial system and money changers don’t want to take a risk. They made many changes to currency that they deemed was not Islamic. Since Afghans are also not leaving India for Kabul, the notes are stuck here,” he said.Bank-e-Milli, Ghazanfar Bank, Maiwand Bank, Afghanistan National Bank, Afghan United Bank, Pashtany Bank, Azizi Bank and Kabul Bank had become popular in the last few years, but Afghans have traditionally relied on cash transfers from kin abroad. According to World Bank estimates, remittances to Afghanistan was around $790 million, 4% of its GDP. Even money transfer services in India only offer a payout meaning they can receive up to ₹50,000 in one go, but would need to go to the bank’s head office to send money to family in Afghanistan.Fahim Ahmed who reached India two weeks ago said that apart from hawala transfers, it was money transfer companies that helped refugees sustain their lives in countries such as India. “Particularly the ones who came in the last two to three years have no jobs because of Covid-19. Afghanistan was learning to trust banks, but now it is likely to go back to fully cash dependency,” he said.“Some banks offer online banking but it is very complicated. I have an account in Maiwand but cannot access it here. I have been trying for days, only one in 100 transactions gets across,” said Younus Ashraf, a lawyer who came here in August first week.Mohammed Noor who reached here three weeks ago on a medical visa said Afghan residents were reeling from a severe shortage of cash as banks remained shut and remittances from abroad dried up. “We are not able to access our savings here. The only way is for our family members to send it to us. But ATMs across Afghanistan are empty and money exchange is unavailable. There is a lot of uncertainty surrounding exchange rates. Many of us have brought Afghan currency as we had to leave in haste but we are not able to exchange it here. I wanted to withdraw total of 8,000 afghanis, or $88, before the money ran out but I hardly managed 4,000 afghanis,” he said, adding that people like him have been talking to money changers particularly in Balli Maran in Chandni Chowk and traders in Okhla who have access to traders in Afghanistan to get their currency exchanged.A money changer in Okhla, Mohammed Amjad said the suspension of banking services in Afghanistan has severely affected patients who have come for critical surgeries and cancer care. “They bring cash or dollars but depend a lot on families to send money from shared accounts. Their visit has been prolonged here due to suspension of flights, and additional lodging and medical care requires a lot of cash that they are having trouble arranging.”Noor said in some areas, his relatives back home in Kabul have also queued up in front of banks for hours just to enquire if money is safe but haven't been able to get a proper answer. “Those who worked in the army, government and government-run schools are yet to receive their salaries. Even the Sarai Shazada market where most money gets exchanged has been closed for days. Countries like India should let people open bank accounts as soon as possible. It is a safer form of managing their finances while in exile,” he added.