Election Commission Mandates Banking System for Campaign Finance in Upcoming General Elections

Kathmandu. The Election Commission has issued the 'Election Campaign Banking Account Operation and Management Procedure, 2082' with the objective of fully integrating the expenditure of political parties and candidates during the general elections into the banking system.

The Commission approved this procedure in its meeting held on Magh 20. The Commission stated in a press release that this procedure has been introduced based on Section 24 and Section 50 of the Election Commission Act, 2073, Section 16 of the Election Code of Conduct, 2082, the Commission's decision of Magh 8, and the directive issued by Nepal Rastra Bank on Magh 12.

In accordance with the directive issued by the Regulation Department of Nepal Rastra Bank to 'A', 'B', and 'C' class banks and financial institutions licensed to conduct banking transactions, the goal is to make election-related financial transactions transparent and disciplined.

According to the Commission, all political parties registered with the Commission to participate in the House of Representatives Election, 2082, including those contesting under proportional representation and first-past-the-post (direct) electoral systems, their candidates, and independent candidates, must channel all financial contributions, donations, and total expenditures for campaigning through this special bank account. This arrangement has been made to discourage cash transactions and maintain clear records of all income and expenditure.

Under the procedure, political parties must obtain a recommendation from the Election Commission Secretariat to open a bank account for election campaigning, while candidates will receive recommendations from the respective district election office. Accounts can only be opened in designated banks and financial institutions based on these recommendations. The procedure also covers provisions related to account operation, transaction limits, the process for submitting details, and monitoring.

The Election Commission has directed all subordinate election offices and banks/financial institutions to take necessary actions according to the procedure. Furthermore, political parties, their candidates, and independent candidates have been urged to actively cooperate, coordinate, and facilitate the effective implementation of this arrangement. The Commission claims that linking election campaign expenditure to the modern banking system marks the beginning of cultured behavior, which will enhance public trust in the electoral process.

This move by the Election Commission is viewed as a significant step towards improving election expenditure management. In the context of past elections where actual campaign expenditure details were often unavailable, cash transactions were prevalent, and complaints regarding exceeding expenditure limits were increasing, the new procedure is expected to enhance transparency and accountability. The Commission believes that transactions through the banking system will facilitate source identification, expenditure 'tracking', and subsequent auditing.