Hike weekly withdrawal limit for poll candidates to Rs 2 lakh: EC to RBI
New Delhi: The Election Commission (EC) on Wednesday asked the Reserve Bank of India (RBI) to hike the cash withdrawal limit for Assembly election candidates to Rs 2 lakh per week, from the existing Rs 24,000.
The Assembly polls are scheduled to take place in 5 states - Uttar Pradesh, Punjab, Goa, Manipur and Uttarakhand - from February 4.
In the letter addressed to RBI Governor Urjit Patel, the EC said it has been apprised of the problems being faced by the candidates from different political parties due to imposition of limits on cash withdrawals from banks.
As per the directions of the EC, each candidate has to open a separate bank account and all receipts and payments during the entire election process will be made through this account.
Since the entire process will most likely last for three to four weeks, the maximum amount the candidates can withdraw is Rs 96,000/- which is much lesser than the stipulated amount of expenditure by the candidates in the states of Punjab, Uttar Pradesh and Uttarakhand (Rs. 28 lakh) and Manipur and Goa (Rs. 20 lakh).
Stating this, the EC made this request to the RBI and asked for the facility to be extended till March 11, the day of counting.
The letter also added, "Petty and recurring expenditure is generally incurred in cash. The issue is further adversely compounded in rural areas where banking facilities are not available or negligible.
The RBI earlier this month more than doubled the daily ATM withdrawal limit to Rs 10,000 but retained the weekly ceiling at Rs 24,000. RBI also doubled the weekly withdrawal limit from current accounts to Rs 1 lakh from Rs 50,000 - a move which will ease cash position of small traders.
"On a review of limits placed on withdrawals from ATMs and current accounts, it has been decided to enhance the same, with immediate effect...," the central bank said in a notification.
RBI had increased the daily withdrawal limit from ATMs to Rs 4,500 from Rs 2,500 effective January 1. "The limit on withdrawals from ATMs has been enhanced from the current limit of Rs 4,500 to Rs 10,000 per day per card," RBI said, adding that it will be operative within the existing overall weekly limit.
The limit on withdrawal from current accounts has been enhanced from the current limit of Rs 50,000 per week to Rs 1 lakh per week and it extends to overdraft and cash credit accounts also, RBI said.
RBI had placed limits on cash withdrawals following demonetisation of old Rs 500 and Rs 1,000 notes on November 9, 2016. The 50-day demonetisation period ended on December 30.
However, NRIs and Indians who were abroad during the demonetisation period have been given additional time to deposit their old currency notes.
