EC lowers cap for anonymous donations to Rs 2000, asks parties to go cashless

New Delhi: After lowering of the cap on anonymous donations to political parties to Rs 2,000 from Rs 20,000 per person, the Election Commission is looking at cashless funding as the ultimate goal to stem the use of black money in elections.

The Chief Election Commissioner Nasim Zaidi also warned that if parties try to sidestep proposed changes in election and income tax laws by taking advantage of any loophole, they will be dealt with accordingly.

"We may consult them on how to evolve a system. Cashless donations would be the ultimate. But whether we will be able to reach there, is the question. Ultimately the whole society is saying funding to political parties should be cashless. That is the ultimate desirable," Zaidi said.

The Commission has not started correspondence with political parties on the issue so far as "many other factors will have to be kept in mind", the head of the country's poll watchdog said.

Zaidi's pitch came as experts suggested that efforts should be made to make donations to political parties totally cashless to usher in more transparency.

Admitting that many political parties depend on cash donations of small amounts, Zaidi said, "We have to look at the availability of infrastructure for digital transactions. Will it be available in villages. I am not ruling it out. This should be the ultimate goal."

He also maintained that the decision to reduce the cap on anonymous donations to political parties from Rs 20,000 to Rs 2,000 per person will help increase transparency.

Asked about the possibility of parties finding loopholes to circumvent the Rs 2,000 cap, Zaidi said, "I am not saying such a situation cannot arise. I am saying at least to some extent transparency will increase and anonymity will come down."

To a question on parties using small denomination coupons or receipts to generate funds, he said the view of some parties is that if small donations do not come, they will suffer and these donations also help them in organising rallies.

He said if the Commission sees any misuse, it will deal with the complaint, accordingly.