The after effects of demonetization are quite promising, earlier RBI imposed a cash withdrawal limit for the candidates who were contesting for the upcoming Assembly polls. Following the announcement by RBI, Election Commission (EC) has appealed to the concerned authorities to relax weekly cash withdrawal limits.
Putting aside the appeal from the beginning itself, the Reserve Bank of India firmly rejected the request. While the decision of RBI seems appreciable for many, All India Bank Employees’ Association (AIBEA) on the other hand said that RBI is less of money and that is the actual reason.
C H Venkatachalam, General Secretary, AIBEA said, “The decision is appreciable but reality is that there is no money in the banks to give”.
Regarding the allotted cash limits, the EC had argued with RBI stating that the weekly withdrawal limit of Rs 24,000 translated into a monthly withdrawal of Rs 96,000 as it is well below the poll expense limit of Rs 28 lakh per candidate in states like in Uttar Pradesh, Uttarakhand and Punjab.
In according to the RBI’s stand, it appears like the candidates in upcoming elections will have to increase their reliance on digital payments or cheques, further disclosed their expenses.