Do not release more than Rs 1 lakh in cash, EC tells banks

CHENNAI: The Election Commission has issued instructions to all banks that they should not disburse more than Rs one lakh to customers who do not produce justifiable reasons for withdrawal of money from their accounts.
The curbs have been introduced with a view to tightening the flow of black money into elections. Earlier, the EC had instructed banks to inform district collectors about customers who withdraw more than Rs one lakh from their accounts. But that did not act as a deterrent on the huge cash withdrawals from banks. Hence the EC decided to tighten it further by making it mandatory for customers to explain reasons for huge withdrawal of cash.
Chief electoral officer Praveen Kumar said officials on election duty would continue to strictly inspect vehicles. So far, more than Rs 25 crore has been seized in cash and valuables during vehicle checks. About Rs 5 crore has been returned to people who produced valid documents proving their source of funds.
J Syed Khan, a realtor in Chennai, said the real estate business had taken a hit in the last one month owing to problems in handling black money.