Election Commission Introduces Mandatory Bank Account System for Campaign Spending

The Election Commission has introduced the Election Campaign Bank Account Operation and Management Procedures, 2082 with the aim of ensuring transparency and accountability in election-related expenditures by political parties and candidates.

Under the new provision, all campaign-related income and expenses during general elections must be conducted through the formal banking system. The Commission stated that the procedure has been enforced in line with Sections 24 and 50 of the Election Commission Act, 2073, Section 16 of the Election Code of Conduct, 2082, and directives issued by Nepal Rastra Bank, the country’s central bank.

According to the Commission, the rule applies to all political parties registered with the Commission and contesting elections under both the proportional representation (PR) and first-past-the-post (FPTP) systems. The provision is also mandatory for candidates nominated by political parties as well as independent candidates.

As per the procedure, all financial support, donations, and expenditures related to election campaigning must be deposited and disbursed exclusively through a designated campaign bank account. The move is intended to discourage cash-based transactions and maintain clear, verifiable records of campaign finances.

Political parties are required to obtain a recommendation from the Election Commission Secretariat to open a campaign bank account. Similarly, candidates must secure a recommendation from the election office of the concerned district. Based on these recommendations, accounts can only be opened at designated banks and financial institutions.

The procedure also outlines detailed provisions regarding account operation, transaction limits, submission of financial details, and monitoring mechanisms. These measures are expected to strengthen oversight and compliance throughout the election period.

The Election Commission believes that routing all campaign transactions through the banking system will make it easier to identify funding sources, track expenditures, and conduct post-election audits effectively. The initiative is seen as a significant step toward promoting clean elections, enhancing financial discipline, and strengthening public trust in the electoral process.