In the wake of the new Reserve Bank of India (RBI) order lifting the withdrawal limits for current accounts, the Election Commission has advised candidates contesting Assembly polls in five States to open current accounts to tide over the currency crunch in meeting election expenses. Such a move will help candidates to have enough hard currency as well as overcome problems faced with the existing Rs 24,000 per week cash limit set on savings accounts.
The RBI on Monday announced lifting of daily restrictions on cash withdrawals from ATMs as well as current accounts. The latest move comes close on the heels of the Election Commission expressing its displeasure to the RBI for rejecting the request to enhance the cash withdrawal limit for candidates to Rs two lakh per week.
After the decision of the RBI, the Election Commission has asked all candidates to open current accounts for meeting election expenses.
Candidates are bound to open an election account for meeting poll-related expenditure which is monitored by the EC. Since there is no mention of any specific category of account that needs to be opened, candidates mostly opt for savings account.
With the central bank putting in place limits on cash withdrawals in the wake of note ban, candidates are facing problems in meeting expenses where hard cash is required. The EC said the facility be extended till March 11, the day of counting.
