Electoral Bonds as the primary source of donations for political parties in India
Electoral bonds system was introduced in 2017 by way of a Finance bill and it was implemented in 2018.
Through EB individuals and entities can make donations to registered political parties while maintaining donor anonymity.
State Bank of India issues the bonds in denominations of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 crore.
Payable to the bearer on demand and interest-free.
EB can purchased by Indian citizens or entities established in India.
EB can be bought individually or jointly with other individuals.
Valid for 15 calendar days from the date of issue.
Electoral Bonds are issued through designated SBI branches only.
Only the political parties registered under Sec 29A of the RP Act, 1951 is eligible for EB.
Political parties secured not less than 1% of the votes polled in the last general election to the House of the People or the Legislative Assembly, are eligible to receive electoral bonds.
Benefits of EB
Enhanced transparency in political party funding.
Accountability in disclosing donation utilization.
Discouragement of cash transactions.
Preservation of donor anonymity.
Challenges in EB
Anonymity may compromise , with right to know ,which is part of the right to freedom of expression under Article 19 of the Constitution.
Anonymity may be compromised by government access to donor data and disrupt free and fair elections.
Risk of crony capitalism and infusion of black money.
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