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They are not even looking at my extract, they just see my license and say its not as per ministry standards. Since, you have asked about the chip, my license is actually very old and it has some dirt marks on it including chip, do you think that could be the problem? Do we have any solution for...

Yes

@Gillneedwheels, I came to Canada recently and facing the same issue as you. Were you able to find a solution for this? Any help would be appreciated!