Banks to become EC's eyes and ears during polls

Banks will have to inform the EC of any unusual or suspicious cash withdrawals above Rs 1 lakh during polls

The Election Commission of India (ECI) is casting its net wider to keep a tab on poll expenses and suspicious transactions during electioneering.

Now, banks will have to inform the ECI of any unusual/suspicious cash withdrawals above Rs 1 lakh during elections and report other suspicious cash transactions that might be used for bribing electors.

In a communication to the Indian Banks’ Association, the poll body said it was empowering district election officers (DEOs) to ask for this information, to maintain purity in the election process.

Earlier, the ECI had brought the income tax (I-T) department into the web of information sharing on money transactions relating to polls. Banks would also have to furnish information on unusual transfer of amounts through the Real Time Gross Settlement System (RTGS), an electronic payment channel. They’ve been told to watch movement of funds from one account to several others in a district or constituency without any precedent for such transfer.

Any cash deposit or withdrawal exceeding Rs 1 lakh from a bank account of a candidate or spouse or dependents mentioned in the poll affidavit filed by candidates also comes under the ambit.

Information on withdrawal and deposit of cash over Rs 1 lakh from a political party’s account during the poll process is also to be shared with DEOs.

IBA has assured the ECI that branches of commercial banks would cooperate with DEOs in monitoring the election process, including expenditure monitoring.

Wherever the DEOs suspect that cash is being used to bribe voters, they could ask a flying squad for immediate action.

If there are instances of cash deposit and withdrawals above Rs 10 lakh, they are to alert the I-T department for further action.