What are Electoral Bonds?
With the new Budget 2017-18, cash donations to political parties have been capped from 20,000 INR to 2, 000 INR.
Electoral Bonds would be issued by scheduled banks as notified by the RBI. Anyone by mode of digital payments or cheque can donate to political parties & their campaigns by buying electoral bonds of several denominations. The person would remain anonymous to the political party but his identity would be known to the banks. Hence, it will push transparency in political funding.
> There is no provision of interest being paid to buyers of the Electoral Bonds.
> The bonds can be encashed only on the accounts notified at Election Commission by political parties.
> There would be a time limit for redeeming the electoral bond so that it doesn’t turns into parallel currency.
> Since currently only RBI can issue bonds so amendments will need to be made in RBI Act for issuing electoral bonds by scheduled banks.
With Great Love,
Er. Amit Yadav