NEW DELHI: Two of India’s autonomous bodies – Reserve Bank of India (RBI) and Election Commission- have locked horns over the cash-withdrawal limits for candidates in the impending Assembly polls. Following RBI’s refusal to increase the limit, the EC has shot a sharply-worded letter averring that the former has not “realised the gravity of the matter”.
Director General of EC Dilip Sharma has sent a letter to RBI Governor Urjit Patel on January 24 seeking a relaxation of withdrawal limits for those contesting Assembly elections in five states. The Commission had sought an enhancement of limit from the present Rs 24,000 per week to Rs 2 lakh to allow the candidates to meet their campaign expenditure. However, the RBI refused to comply with the direction saying the lifting of cap on money withdrawal was not possible at this time. This has not gone down well with the EC.
In a letter dated Jan 28, Sharma has contended that the RBI has handled the matter in a cursory manner, “The Election Commission has expressed serious concerns about the cursory manner in which this issue has been dealt with and it appears that the Reserve Bank of India has not realised the gravity of the matter,” Sharma said in his latest letter.
The EC’s Director General said the enhancement of the withdrawal limit is imperative for giving a level playing field to all the candidates in fray for the Assembly polls in Goa, Manipur, Punjab, Uttarakhand and Uttar Pradesh. “In order to facilitate proper conduct of elections, it is imperative that directions issued by the Commission are complied with,” Sharma added.
Candidates in Uttar Pradesh, Uttarakhand and Punjab can spend Rs 28 lakh each for canvassing. The limit in Manipur and Goa is Rs. 20 lakh per candidates. But due to the RBI imposed ceiling on cash withdrawal, the candidates would be able to withdraw only Rs. 24,000 during the times of electioneering.
The Election Commission has been earlier informed the Central Bank that the candidates could be facing problem due to the withdrawal limits put in place post demonetisation. 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 Rs 2 lakh cash per week from the bank account opened especially to meet poll expenses.
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.