Taking strong exception to the Reserve Bank of India (RBI) rejecting its request to increase the withdrawal limit from Rs24,000 per week to
Rs2 lakh in five poll-bound States, the Election Commission has expressed “serious concern about the cursory manner in which the issue has been dealt with”.
“(It) appears that the RBI has not realised the gravity of the situation,” the poll watchdog shot back in a letter even while asking the Central bank to reconsider its decision since “in order to facilitate proper conduct of elections, it is imperative that directions issued by the commission are complied with”.
“It is the constitutional mandate of the ECI to conduct free and fair elections and to provide level playing field to all candidates. In order to facilitate proper conduct of elections, it is imperative that directions issued by the commission are complied with,” Director General (Election Expenditure) Dilip Sharma wrote in a letter to RBI Governor Urjit Patel on January 28. Sharma said, “It appears the Reserve Bank of India has not realised the gravity of the matter.”
The poll panel had requested RBI to enhance the withdrawal limit to contesting candidates of five poll bound States to Rs2 lakh from Rs24,000 per week imposed post-demonetisation as the nominees would find it difficult to meet their campaign expenditure. The commission has urged the RBI to reconsider the proposal.
Sources in EC said that RBI has conveyed that it was not possible for it to hike the limit at this stage. This means candidates of five poll bound States will have to increase their reliance on digital mode of payments and cheques.
On Wednesday, the commission had told RBI that it has been apprised of the problems candidates were facing due to withdrawal limits imposed after the note ban.
It said the returning officer of the constituency would issue certificate that the person was a candidate in the fray and the contestant be allowed to withdraw Rs2 lakh cash per week from the bank account opened especially to meet poll expenses.
The Commission 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 affected in rural areas where banking facilities are negligible.