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LATEST NEWS UPDATES | EC renews plea to RBI for higher cash withdrawals

EC renews plea to RBI for higher cash withdrawals

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published Published on Jan 30, 2017   modified Modified on Jan 30, 2017
-The Hindu

EC expresses "serious concern about the cursory manner in which the issue has been dealt with"

The Reserve Bank of India (RBI) has turned down the Election Commission’s request to enhance the cash withdrawal limit for nominated candidates in the five poll-bound States, from Rs. 24,000 to Rs. 2 lakh per week, till the declaration of results on March 11.

Asking the RBI to reconsider, the EC on Saturday again wrote to it expressing serious concerns “about the cursory manner in which this issue has been dealt with and it appears that the RBI has not realised the gravity of the matter.”

The Commission reiterated that in order to facilitate proper conduct of elections, it was imperative that its directions were complied with.

“In this context, the ECI had desired that the current limit on cash withdrawal for candidates for the coming elections may be enhanced in order to ensure that the candidates are able to defray election expenditure up to the statutory limits.”

It had earlier written to the RBI stating that it had been told about the problems being faced by the candidates from different political parties, particularly in the rural areas, due to imposition of limits on withdrawal of cash from banks. As per the EC directive, each candidate has to open a separate bank account.

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The Hindu, 29 January, 2017, http://www.thehindu.com/news/national/EC-renews-plea-to-RBI-for-higher-cash-withdrawals/article17112578.ece?homepage=true


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