New Delhi:
The Election Commission has written to the Reserve Bank of India asking it to increase the weekly limit of cash withdrawal limit for candidates from Rs 24,000 to Rs 2 lakh. The request of the Election Commission comes ahead of the assembly elections in five states, which begin on February 8. According to the last rule of the Central Bank, one can withdraw Rs 24,000 a week from banks. But no special provision has been made for the candidates contesting the assembly elections.
In its letter to the Reserve Bank, the Commission said it has been "apprised of the problems" the candidates are facing. The government, it said, has fixed a limit of expenditure, which is 28 lakh for Punjab, Uttarakhand and Uttar Pradesh and Rs 20 lakh for Manipur and Goa. But given the cap of Rs 24,000 on withdrawal per week, the candidates can withdraw only Rs 96,000 over the three to four weeks left, the Commission pointed pointed out.
"Even considering that part of the expenditure will be incurred through cheque, petty and recurring expenditure is generally incurred in cash," the letter read. "The issue is further compounded in rural areas, where banking facilities are not available or are negligible."
The ban on 500 and 1000 rupee notes, which came within a few hours of Prime Minister Narendra Modi's surprise announcement on November 8, has been followed by a huge cash crunch as nearly 86 per cent of currency suddenly went out of circulation. The Reserve Bank imposed withdrawal limits from banks and ATMs. While the situation has eased as the new notes of Rs 500 and Rs 2000 trickled into circulation, the RBI is relaxing the cash withdrawal rules in phrases.
Union Finance Minister Arun Jaitley has said the central bank will remove restrictions on cash withdrawals only after assessing market situation and the government will not interfere in the process.
The elections, which will begin on February 8, will end in March. The results will be announced on March 11.