The Reserve Bank of India on Sunday rejected the Election Commission’s request to increase the weekly withdrawal cap for candidates contesting in the upcoming Assembly elections, PTI reported. However, the central bank did not cite any reason for turning down the request.
On January 25, the poll panel had asked the RBI to increase the weekly withdrawal limit to Rs 2 lakh for candidates as they need hard cash for petty expenses. The current weekly withdrawal limit is Rs 24,000 and daily limit is Rs 10,000.
The poll panel has written back to RBI Governor Urjit Patel as it is unhappy with the decision taken by the top bank. Stating that the RBI does not realise the gravity of the situation, the EC expressed concern about “the cursory manner in which the issue has been dealt with”. “In order to facilitate proper conduct of elections, it is imperative that directions issued by the Commission are complied with,” the poll panel wrote.
On January 25, the commission had said that candidates faced a cash shortage more so in rural areas while campaigning. The EC has fixed Rs 28 lakh as the limit of poll expenditure for the state. The poll panel had suggested that the returning officer of a constituency could issue certificate to a candidate in fray so that he or she can be allowed to withdraw Rs 2 lakh cash per week. This cash will be withdrawn from the bank account opened specially to meet campaigning expenses, the EC had said.