Election Donation QR Rules Enforced to Ensure Financial Transparency

27th January 2026, Kathmandu

The integration of digital financial services into the democratic process has taken a major step forward with the formal enforcement of the Election Donation QR Rules. This initiative, a collaborative effort between the Election Commission and Nepal Rastra Bank, is designed to bring a new level of accountability to campaign financing. As Nepal approaches its House of Representatives elections scheduled for March 5, 2026, the traditional methods of collecting cash or utilizing personal digital wallets are being replaced by a highly regulated, transparent system. This article explores how these rules are reshaping the intersection of technology and politics in Nepal.

Election Donation QR Rules

The core objective of these rules is to eliminate the use of informal and untraceable financial channels. In previous election cycles, candidates frequently shared QR codes linked to their personal bank accounts or private digital wallets to collect small donations from supporters. While convenient, this practice made it nearly impossible for regulators to distinguish between personal income and election contributions. Under the new directive, such activities are strictly prohibited. Instead, all political parties and candidates must open a dedicated, special purpose bank account solely for election related transactions.

The implementation of these rules is being managed through a coordinated institutional approach. Following a formal request from the Election Commission, Nepal Rastra Bank has issued a circular to all Class A, B, and C financial institutions. These banks are now mandated to facilitate the opening of these election specific accounts, which will be the only authorized destination for all campaign funds. Any QR code used for fundraising must be directly linked to these official accounts, ensuring that every rupee donated is recorded within the formal banking system.

Financial transparency is further reinforced by strict reporting requirements. All donations exceeding NPR 25,000 must be made through formal banking channels, and even small cash contributions must be acknowledged with an official receipt and deposited into the designated account immediately. To manage these funds, political parties and candidates are required to appoint a designated financial official whose details must be submitted to the Office of the Election Officer. This clear chain of responsibility is intended to reduce the risk of embezzlement and ensure that all spending aligns with the Election Code of Conduct, 2026.

One of the most innovative aspects of the Election Donation QR Rules is the management of these accounts after the voting concludes. Unlike standard personal accounts, these election specific accounts cannot be closed at the discretion of the candidate. They must remain active and accessible for auditing until the Election Commission provides a formal clearance. This provision allows the commission to verify that the final expenditure reports submitted by candidates match the actual flow of funds through the bank, creating a powerful deterrent against underreporting campaign costs.

The benefits of this digital shift extend to several key areas of electoral integrity:

Tracking and Auditing: Real time monitoring of funds allows authorities to flag suspicious transaction patterns early.

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Preventing Money Laundering: By forcing funds through the banking system, all donations undergo the standard Know Your Customer and anti money laundering checks.

Enforcement of Spending Limits: The centralized account structure makes it easier for the Election Commission to enforce the legal ceilings on campaign spending.

Public Trust: Transparency in financing helps to level the playing field, ensuring that elections are decided by voters rather than the depth of a candidate’s hidden pockets.

The role of technology in Nepal’s elections is also being felt in other areas. The Election Commission has introduced a “Green Election” concept, encouraging digital campaigning over the use of paper and plastic materials. While digital promotion on foreign social media platforms like Facebook and TikTok remains strictly regulated to prevent undisclosed paid sponsorships, the use of official digital platforms for fundraising is being actively promoted as a cleaner alternative.

The transition to a QR based, regulated donation system reflects a broader trend of financial digitization in Nepal. From street side tea stalls to national election campaigns, the country is moving toward a more transparent and formal economy. By closing the loopholes associated with personal QR code sharing, the government is ensuring that the technological convenience of the 21st century serves to strengthen, rather than undermine, the foundations of democracy.

As the March 5 election date approaches, the focus will remain on the effective enforcement of these rules. Both the central bank and the Election Commission have emphasized that violations—including the use of unauthorized QR codes or failure to route expenses through the designated accounts—could lead to significant fines or even the disqualification of candidates. This unified stance marks a significant advancement in Nepal’s journey toward free, fair, and transparent governance.

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