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mains Test Series 2018
Q. RBI and EC on elections: Comment on the way EC and RBI worked in tandem to make the way for increasing the cash limit for candidates.
Feb 02, 2017 Related to : GS Paper-3 and 2

Ans :

Introduction-

Recently election commission has requested reserve bank of India to the central bank last week to raise the weekly cash withdrawal limit for candidates in five states that are going to polls from Rs 24,000 to Rs 2 lakh to meet various expences related to election. The request met with an indifferent response from RBI and accepted it immediately.

EC and RBI working in tandem-

  • The candidates in election campaigns of five election bound states need money in the form of cash for various small expenditures. In this backdrop of EC has requested RBI to raise the withdrawal limit for candidates contesting elections. 
  • The EC followed this request immediately and removed all restrictions on cash withdrawals from current accounts. It only remains for the RBI to instruct banks to make sure that no candidate in any poll-bound state faces any procedural hassle in opening a current account for the purpose of routing election expenses. 
  • The role played by EC and RBI shows how various independent organisation in India supports each other while organising free and fair conduct of democratic elections, in a nation that prides itself as the largest democracy.

Conclusion-

Candidates in ongoing election in five election bound states need money in the form of cash to spend various small expenses. In this background the EC and RBI acted in coordination and get cleared the issue by both organisations immediately. The way both organisations acted reflects the hallmark of Indian democracy.


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