RBI reject the Neta’s approach

No relax limits of cash withdrawl

The Reserve Bank of India is  turned down the Election Commission’s plea to relax weekly cash withdrawal limits for poll expenses, which means candidates in upcoming contests in five states will have to increase their reliance on digital payments systems or cheques.
“RBI has rejected the request,” said a person aware of the development. The Election Commission had suggested a weekly limit of Rs 2 lakh against the current Rs 24,000 permitted for individuals. RBI did not respond to queries sent by ET. Uttar Pradesh, Punjab, Uttarakhand, Manipur and Goa will hold elections in February and March.
The limits were imposed as part of the demonetisation exercise announced on November 8. There have been media reports that these may be relaxed by the end of February as new currency notes are printed and enter the system. The use of cash in elections is typically kept under close watch by tax authorities and election authorities.