In News: Donations to political parties through electoral bonds (EBs) have crossed the Rs 10,000-crore mark, with parties getting another Rs 389.5 crore through such bonds in the 21st sale of EBs conducted between July 1 and 10.
- With this, the total amount collected by parties has gone up to Rs 10,246 crore from various anonymous donors in 21 phases since 2018 when the EB scheme was introduced.
- As per the provisions of the EB Scheme, only the political parties registered under Section 29A of the Representation of the People Act, 1951 and have secured not less than 1 per cent of the votes polled in the last general election to the House of the People or the Legislative Assembly, as the case may be, are eligible to receive electoral bonds.
- Electoral Bond is a financial instrument for making donations to political parties.
- These 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.
- State Bank of India is authorised to issue and encash these bonds, which are valid for fifteen days from the date of issuance.
- These bonds are only redeemable in the designated account of a registered political party.
- The bonds are available for purchase by any citizen of India for a period of ten days each in the months of January, April, July and October as may be specified by the Central Government.
- A person being an individual can buy bonds, either singly or jointly with other individuals.
- The donor’s name is not mentioned on the bond.
- Donors who contribute less than Rs. 20,000 to political parties through purchase of electoral bonds need not provide their identity details such as PAN, etc.
- The central idea behind the electoral bonds scheme was to bring about transparency in electoral funding in India.
Source: Indian Express