The article provides information all about Electoral Bond, its main features, Eligibility Criteria to buy electoral bonds, its needs and significance and controversies related to it.
What are Electoral Bonds?
Electoral Bond are the Bonds that allow donors to pay political parties using banks as an intermediary.
Important features of Electoral Bonds-
- Although called a bond, the banking instrument resembling promissory notes will not carry any interest.
- It will be a bearer instrument.
- It will not carry the name of the payee.
- It can be bought for any value, in multiples of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh or Rs 1 crore.
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- It can be purchased by a citizen of India, or entities incorporated or established in India.
- A person being an individual can buy electoral bonds, either singly or jointly with other individuals.
- Only the registered Political Parties which have secured not less than one per cent of the votes polled in the last Lok Sabha elections or the State Legislative Assembly are eligible to receive the Electoral Bond.
Need of Electoral Bonds:
The electoral bond are aimed at rooting out the current system of largely anonymous cash donations made to political parties which lead to the generation of black money in the economy.
Significance of Bonds
- It will encourage political donations of clean money from individuals, companies, HUF, religious groups, charities, etc.
- After purchasing the bonds, these entities can hand them to political parties of their choice, which must redeem them within the prescribed time.
Controversies over Electoral Bonds?
- The introduction of the electoral bond scheme is part of what appears to be a growing trend away from transparency and accountability, two values which were already sparse in relation to Indian political parties.
- Opponents to the scheme allege that since the identity of the donor of electoral bonds has been kept anonymous, it could lead to an influx of black money.
- Others allege that the scheme was designed to help big corporate houses donate money without their identity being revealed.
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