Kathmandu, Feb. 3
In an effort to bolster
fiscal transparency and accountability during the upcoming parliamentary
elections, the Election Commission of Nepal has implemented the ‘Procedures on
Election Campaign for Parliamentary Member - Bank Account (Account Handling and
Management) 2082’.
The new directive
mandates that all political parties and candidates must channel their
election-related financial activities through dedicated bank accounts, ensuring
a traceable and regulated flow of campaign funds.
Transparency is further
enforced by the requirement that all transactions must be conducted in Nepali
currency. Any expenditure for campaigning—including payments for podiums,
rallies, or publicity—must be made via cheques, drafts, electronic means, or
other negotiable instruments.
While parties and
candidates can accept donations, there are strict thresholds and ‘no-go’
sectors. Any assistance exceeding Rs. 25,000 from a citizen or an organisation
must be deposited directly into the campaign bank account. For donations
exceeding Rs. 100,000, the recipient is legally bound to record the donor’s
name, address, occupation, Permanent Account Number (PAN), and the source of
the funds, including a declaration of its tax status.
The EC has barred the
political parties and candidates from raising financial aid from several
sectors, including government agencies at all levels, institutions with full or
partial government ownership, public limited companies that issued the Initial
Public Offering, and educational institutions like universities and schools.
Likewise, they can’t
collect funds from national and international non-government organisations,
foreign governments, foreign institutions or foreign individuals, and anonymous
donors or undisclosed entities.
Under the new
regulations, political parties and individual candidate are required to submit
their applications to the EC in a prescribed format. The political parties must
provide an official letter from the party, and the candidates must provide
evidence of their candidacy or a valid identity card. They must also submit a
signature specimen card from the chosen financial institution and a copy of the
Nepali citizenship certificate of the person(s) designated to operate the
account.
Once the EC verifies
these documents, it will issue a formal recommendation to the bank to open the
account, notifying the Treasury and Accounts Controller Office and Election
Offices to ensure oversight from the outset.
As per the procedures,
a political party's account must be operated by a maximum of two officials
designated by the party, requiring joint signatures for all transactions. For
individual candidates, the account can be managed by the candidate themselves
or an authorised representative, either through a single signature or joint
signatures of up to two people.
Monitoring and
Closure
The chief of the
relevant Treasury and Accounts Controller Office has been tasked as the
Election Code of Conduct Monitoring Officer. Their role involves continuous
surveillance to ensure that public property is not misused and that campaign
spending remains within the limits set by the EC.
Following the
conclusion of the election, candidates and parties must make their expenditure
details public and submit a report to the Election Office. The EC will then
order the closure of the bank accounts within 35 days of the final report's
preparation.
However, in a bid to
maintain a long-term audit trail, all bank account records must be securely
preserved for a minimum of six years, according to the procedures.
Joint Spokesperson of
the EC Kul GC expressed his confidence that these new procedures will help to
enhance transparency in election financing, both raising funds and
expenditures.
“We want to set a new
good culture in election financing. This is the starting point. But the EC
would put its efforts through the election and treasury offices in better
monitoring the mobilisation of the funds,” said GC.
Published in The Rising Nepal daily on 4 February 2026.
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