"People thought the aid was only for the Bengalis", the secretary of the state government, Tin Maung Swe, said, using a term that Rohingya find offensive.
Murphy said later, after talks with government leaders, that Washington was alarmed by reports of rights abuses and called on authorities to stop the violence, which raised concern about Myanmar's transition from military rule to democracy.
Telling the court that the presence of Rohingyas in India would be a drain on the resources of the country and would affect the rights of the people, the Centre on Monday pointed out that some of the Rohingyas had contacts with Pakistan-based terror outfits.
They now live in the Kutupalong camp in Zafor's family home - a precarious shelter made from two sheets of muddied tarpaulin and sticks of bamboo.
Dhaka - Prime Minister Sheikh Hasina has said the Rohingya Muslims who crossed into Bangladesh fleeing violence in Myanmar must be allowed to return to their homeland in safety, security and dignity.
"We are feeling threatened", she said.
Hindus make up a small but long-standing minority in both Myanmar and Bangladesh.
Murphy said the USA has warned Myanmar about potential repercussions it faces if it doesn't address the crisis, including greater instability in Rakhine, threats to the stability of its borders, the risk of attracting worldwide terrorists, scaring off investment, and ultimately stunting its transition to democracy.
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According to Cuy, the mass exodus of the Rohingya from Myanmar to Bangladesh may be categorized as irregular movement and therefore they may benefit from the trust fund.
As the handful of ill-equipped camps rapidly reached capacity, Bangladesh announced it would create a new site capable of housing some 400,000 refugees within 10 days.
Rohingyas are minority Muslims in western Myanmar and have been fleeing their homes following an army crackdown on their villages that has left hundreds dead.
"Our village in Myanmar was surrounded by hundreds of men in black masks on the morning of August 25", said Veena Sheel, a mother-of-two whose husband works in Malaysia.
He said the matter was being heard by the apex court and "whatever decision will be taken, it will be taken by the Supreme Court".
"I am sure Myanmar will take positive steps to take back the Rohingyas".
It also plans to almost halve to six years the period Hindus, Christians and other minorities from those countries need to have lived in India to be granted citizenship by naturalization.
One person named Aung Tin said his account was shut down more than 10 times and his account was frozen for a month after he wrote a critical post about the Myanmar home minister.
The UN organisation added that New Delhi was bound by global law to protect refugees who face danger in their home country.
Following worldwide pressure, Malaysia and Indonesia agreed to offer temporary shelter to close to 7,000 Rohingya on the condition that by May 2016, the asylum-seekers would be resettled.