By: Getdistributors
Introduction to Electoral Bonds
Electoral bonds are a financial instrument that was introduced in 2018 by the Government of India to bring transparency into political funding.
The biggest advantage of electoral bonds is that they make the donors’ identities anonymous. Different from the case of conventional donations, when the identity of the donor is disclosed to the public and the Election Commission.
Anonymous Donations
The denominations of electoral bonds are available in multiple choices, starting from Rs. Rs.1,000 to as high as Rs.1 crore or more. Thus, this spectrum of contributions makes it possible for people and groups with diverse financial capabilities to support political parties.
Available Denominations
Designated Banks
The only way to buy the electoral bonds is from the branches of the authorised banks designated by the government. This measure is one of the means that will ensure traceability and accountability of the issuing and use of these bonds.
Validity & Redemption
Electoral bonds are valid only for a given period during which they must be exchanged by the political party. This point is to stop the holding of bonds and make sure that they are used in time.
Legal Framework & Criticisms
The electoral bonds have faced criticism from different corners the opponents. Critics contend that the anonymity they provide tends to reduce accountability and offers channels for black money to corrupt political decisions.
Government's Justification
The government has retorted that the electoral bonds are an instrument to ensure clean and transparent political funding. Proponents of this method of donation say that the banking channels help to reduce the use of unaccounted cash and black money in elections.
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