Problem in Conduct of Public Election
Electoral Bonds (EBs)
- It is a bearer instrument, like a promissory note, that is payable to the bearer on demand to donate their contributions to political parties.
- SBI is the only bank authorised to sell these bonds.
Working of Electoral Bonds
-
- A citizen of India or a body incorporated in India is eligible to purchase the bond.
- EBs are issued/purchased for any value, in multiples of Rs.1,000, Rs.10,000, Rs.1,00,000, Rs.10,00,000 and Rs.1,00,00,000 from the specified branches of the State Bank of India (SBI).
- EBs have a life of only 15 days during which it can be used for donating only to the
- registered political parties.
- The bonds shall be available for purchase for 10 days each in January, April, July and October as may be specified by the Central Government.
- The bond can be encashed by an eligible political party only through a designated bank account with the authorised bank.
Rationale behind the introduction of EB
- Shift from cash-based to digital transactions to curb unaccounted or black money in political funding.
-
- Ensure donor anonymity to promote broader participation in political funding.
- Formalize political contributions through the banking system for transparency and accountability.
- Electoral bond scheme mandates disclosure of bond donations in party financial statements to improve funding transparency.
