Why traders want Election Commission of India to revise the ₹50,000 cash-carrying limit Premium

Traders urge Election Commission to raise the ₹50,000 cash limit, citing inflation and practical challenges during Tamil Nadu elections.

With the Model Code of Conduct (MCC) in force in poll-bound Tamil Nadu, some stakeholders have raised concerns over the ₹50,000 cash-carrying limit prescribed by the Election Commission of India (ECI). Those carrying cash above this limit would have to satisfactorily explain its source.

Tamil Nadu Chief Electoral Officer (CEO) Archana Patnaik had said, “If valid documentary evidence or written explanation is provided regarding the source and intended purpose of the funds and upon verification, if the authorities are satisfied that the cash is not meant for distribution to voters, such amounts will be returned to the rightful owner and will not be seized.”

However, Tamil Nadu Vanigar Sankangalin Peramaippu (a traders’ body) president A.M. Vikrama Raja questions the logic behind the cash limit. He argued the slab of ₹50,000 was fixed several years ago and urged that traders be allowed to carry cash up to ₹2 lakh. “The price of commodities were different back then when compared to the situation now,” he told The Hindu.

District Collectors should invite trader associations for talks, as they are among the most affected along with farmers, Mr. Raja said. If the documents produced for the cash were in order, traders should not be harassed unnecessarily.

“Let there be one point. Now, traders are being asked to go to the Tahsildar, then to the RDO, the Collector, or the election officer. It should not happen. There are practical issues,” he underlined. In some places, money was confiscated, just a few minutes after the Model Code of Conduct came into force on Sunday last. “Don’t we need at least some time to go home?”

V. Gopalakrishnan, who used to own a shop, suggested if the limit was only ₹50,000, banks should be directed to disburse only ₹50,000 in cash (in a single transaction) to customers. He also flagged a practical difficulty. “When a trader winds up business with several transactions during the the whole day and goes home with money, how can he/she show all the bills if they are intercepted?” To avoid trouble, he rather suggests going fully digital during the MCC. “It is not impossible. These days, even small shops have provisions for digital transactions,” he reasoned.