Tag: Rationale behind the introduction of EB

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.