[New Delhi]RBI Rejects EC’s Plea for Raising Cash-Withdrawal Limit for Candidates.At present Candidate can withdraw Rs 96K Whereas Expenditure limit is Rs 20-28 Lakh
The Reserve Bank of India (RBI) has rejected the request of the Election Commission to enhance the weekly cash-withdrawal limit, imposed after demonetisation, for those contesting Assembly elections in five states, prompting an angry reaction from the poll panel.
The Commission had on Wednesday requested RBI to enhance the withdrawal limit of candidates to Rs 2 lakh from Rs 24,000 per week imposed post demonetisation as the nominees would find it difficult to meet their campaign expenditure.
But RBI said that it was not possible for it to hike the limit at this stage.
An apparently peeved Commission has now written back to RBI Governor Urjit Patel expressing “serious concern about the cursory manner in which the issue has been dealt with”.
The EC said the facility be extended till March 11, the day of counting. Candidates are bound to open an election account for meeting poll-related expenditure which is monitored by the EC.
The Commission said that with a weekly withdrawal limit of Rs 24,000, a candidate would be able to withdraw Rs 96,000 in cash during the election process which lasts three to four weeks.
It reminded the central bank that as per law, candidates contesting Assembly polls in Uttar Pradesh, Uttarakhand and Punjab can spend Rs 28 lakh each for electioneering.
The limit in Goa and Manipur is Rs 20 lakh each. The poll panel said despite paying amounts through cheques, candidates still need hard cash for petty expenses. Also the issue is further adversely effected in rural areas where banking facilities are negligible.