The EC wanted all recognised political parties to open a separate bank account to accept donations so that the transactions can be monitored.
The commission also suggested that the treasurer of the parties should maintain the finances and accounts of the party and that accounting norms should comply with the standards issued by the Institute of Chartered Accountants of India (ICAI).
The EC, which has created an election expenditure monitoring cell and deploys tax sleuths to monitor cash funds for some years now, has stressed that all payments made to candidates for poll-related expenses should be done through recognised banking channels as mandated by RBI.
“Where the party provides any lump-sum amount to its candidates for meeting their election campaign expenses, it should be ensured that such amount is given only by Account Payee cheque or draft or by RTGS or NEFT or internet transfer,” the EC said.
The commission also suggested parties should obtain utilisation certificate from the candidates for funds disbursed to them saying this money has been spent for defraying their election-related expenses.
The EC said that during election process, political parties should ensure that any candidate, functionary or party worker does not carry funds in cash exceeding a specified amount.