The Election Commission on Wednesday wrote to the Reserve Bank of India asking it to increase the weekly withdrawal limit for candidates contesting in the Assembly elections to Rs 2 lakh, ANI reported. On January 16, the RBI had increased the daily ATM withdrawal limit for people to Rs 10,000 from Rs 4,500. However, it had not changed the weekly withdrawal limit from saving’s accounts, which is Rs 24,000.

The poll panel suggested that the returning officer of the constituency could issue certificate to a candidate in fray so that he or she can be allowed to withdraw Rs 2 lakh cash per week. This cash will be withdrawn from the bank account opened specially to meet campaigning expenses, the EC said according to PTI. This facility should be extended till March 11.

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The commission said that candidates need hard cash for petty expenses and that they faced a cash shortage more so in rural areas, where banking facilities are “negligible”. The EC has fixed Rs 28 lakh as the limit of poll expenditure for the state.

On January 18, Punjab Congress Chief Amarinder Singh had urged the poll panel to direct the RBI to relax the withdrawal limit for candidates contesting in Assembly polls and “facilitate fair play of democratic processes”, PTI reported. Singh had said that the candidates were expected to incur expenditure on their respective campaign for which the withdrawal limit should be relaxed.

In a bid to tackle black money, corruption and counterfeit issues, Prime Minister Narendra Modi on November 8 had announced the demonetisation of Rs 500 and Rs 1,000 currency notes. Since then, the country has been facing a cash crunch. Following demonetisation, Income Tax officials said around Rs 3 lakh crore to Rs 4 lakh crore of tax-evaded income was deposited in bank accounts during the 50-day period the Centre had allowed citizens after November 8.

Uttar Pradesh, Punjab, Manipur, Goa and Uttarakhand are going to have elections from February 4, and the votes will be counted on March 11.