Electoral Bonds | UPSC CURRENT AFFAIRS |
Electoral Bonds: Current Affairs
Relevance: Polity and Governance.
Context: Supreme Court to hear plea against the sale of electoral bonds. NGO seeks to stay on scheme ahead of Assembly elections in key States.
What are electoral bonds?
- The electoral bonds were introduced with the Finance Bill (2017).
- Objective: To ensure that the funds being collected by the political parties are accounted for money or clean money.
- Eligibility: Any Political party that is registered under section 29A of the Representation of the Peoples Act, 1951 and has secured at least one per cent of the votes polled in the most recent General elections or Assembly elections is eligible to receive electoral bonds.
- An electoral bond is like a promissory note that can be bought by any Indian citizen or company incorporated in India from select branches of the State Bank of India only.
- Electoral Bond is a financial instrument for making donations to political parties.
- The bonds are issued in multiples of Rs. 1,000, Rs. 10,000, Rs. 1 lakh, Rs. 10 lakh, and Rs. 1 crore without any maximum limit.
- A person being an individual can buy bonds, either singly or jointly with other individuals.
- An individual or party will be allowed to purchase these bonds digitally or through a cheque after disclosing their identity through know your customer (KYC) norms.
- The donor’s name is not mentioned on the bond.
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