Election expenses to be tracked through separate accounts: NRB
Kathmandu: Political parties and independent candidates contesting the election have been permitted to open a separate bank account for election purposes. While a natural person has been allowed to open only one account in a single bank under the existing provision, an additional account has been allowed for political parties and independent candidates for election-related transactions.
A public notice has been issued on Monday by Nepal Rastra Bank to banks and financial institutions, and arrangements have been directed to be made to open such accounts if candidates wish to do so. Under Section 38 of the Political Parties Act, donations exceeding NPR 25,000 are required to be received through the banking system, although the extent of compliance has not been confirmed.
The election for the House of Representatives is scheduled to be held nationwide on Falgun 21. As a separate record of election income and expenditure has been sought to be maintained, the opening of a separate account has been requested by candidates, and the request has been forwarded to Nepal Rastra Bank by the Election Commission.
The arrangement has been introduced after the request was accepted. It has been stated by Mr. Guru Prasad Paudel, Spokesperson of Nepal Rastra Bank, that all bank branches have not been reached in every location and, in some places, only one bank or financial institution may be operating. In such situations, the opening of another election-focused account in the same bank has been allowed.
It has been informed that greater clarity will be ensured regarding how much has been spent by each party and how much has been donated by whom, and election transparency is expected to be strengthened. It has also been clarified that transactions through existing accounts have not been restricted; however, facilitation has been provided as some candidates have preferred a separate account for election purposes only.
According to Nepal Rastra Bank, such accounts will be allowed to be used until closure is instructed by the Election Commission. It has also been stated by the Election Commission that Nepalis residing abroad may wish to provide financial support, and record-keeping is expected to be made easier through a dedicated account.
Higher donation collection has been projected for this election, and as donations have been preferred to be made through banks, the demand for separate accounts has been raised by candidates, according to the Commission.
Banks and financial institutions have been instructed to open such accounts only on the recommendation of provincial and district election offices under the Election Commission. In the notice, it has been stated that one separate bank account has been arranged to be opened and operated for each political party, candidates representing those parties (including proportional representation candidates), and independent candidates, for election campaign income and expenditure transactions in Nepali currency.
According to the Election Commission, candidacies have been registered by 3,486 individuals for 165 seats under the first-past-the-post system.
