Things you should know about Electoral bond

Things you should know about Electoral bond

 Electoral bonds are financial instruments introduced by the Government of India in 2018 as a mechanism for making donations to political parties. These bonds are essentially promissory notes that can be purchased by any individual or organization from specified branches of authorized banks.

• They are used for making donations to political parties.
• Donors can purchase these bonds from specified branches of authorized banks.
• The identity of the donor remains anonymous to the public and the recipient political party.
• Electoral bonds can only be encashed by registered political parties within a specified time frame.
• Supporters argue that electoral bonds promote transparency in political funding by channeling donations through banking channels.
• Critics raise concerns about the anonymity of donors and the potential for misuse of these bonds.

The primary feature of electoral bonds is that they allow donors to make anonymous contributions to political parties. The identity of the donor is not disclosed to the public or the recipient political party. Additionally, these bonds can only be encashed by registered political parties within a specified time frame.

Supporters of electoral bonds argue that they promote transparency in political funding by channeling donations through banking channels and reducing the influence of cash donations. However, critics raise concerns about the anonymity of donors and the potential for misuse of these bonds to facilitate unaccounted funding to political parties.

Overall, electoral bonds remain a subject of debate in India, with ongoing discussions about their effectiveness in reforming political funding and ensuring transparency in the electoral process.