ECI seeks restrictions on cash donations to political parties, writes to government

Source: The post is based on the article “ECI seeks restrictions on cash donations to political parties, writes to government” published in The Hindu on 20th September 2022.

What is the News?

Election Commission of India (ECI) has suggested a number of amendments to RP (Representation of People Act) Act,1951 to increase transparency and accountability on the part of candidates.

What are the suggestions given by the Election Commission?

Donations: All donations above Rs 2,000 should be reported, thereby enhancing transparency in funding.

– As per current rules, political parties have to disclose all donations above Rs 20,000 through their contribution report that is submitted to the EC.

Cash Donations: Restrict cash donations at 20% or at a maximum of ₹20 crores out of the total funds received by a party, whichever is less.

Digital Transactions: Make digital transactions or account payee cheque transfers mandatory for all expenses above ₹2,000 to a single entity/person.

Separate Bank account: Every fielding candidate should open a separate bank account for election purposes and route all expenses and receipts through this account, and furnish these details in their account of election expenditure.

– As of now, maintaining a separate bank account for poll expenditure is part of the instructions but EC wants it to become part of the Conduct of Election Rules.

Ensure that no foreign donations creep into the funds of the political parties as stipulated under the RP Act and the Foreign Contribution Regulation Act (FCRA), 2010.