ELECTORAL BONDS ......IS IT GOOD

Electoral bonds are financial instruments that are used for making donations to political parties in India. Introduced by the Government of India in 2018, electoral bonds are like promissory notes that can be purchased from specified branches of State Bank of India (SBI) for specified denominations.
These bonds were introduced with the aim of promoting transparency in political funding. Unlike cash donations, which were previously common and lacked transparency, electoral bonds are intended to be a more transparent means of making political contributions. The identity of the donor remains anonymous, but the political party receiving the bond is aware of the donor's identity.
The key features of electoral bonds are:

1. Anonymity: The donor's identity is not disclosed to the public, only to the bank and the political party receiving the bond.
2. Exclusivity: Electoral bonds can only be purchased from specified branches of the State Bank of India during designated periods.
3. Denominations: Electoral bonds are available in multiple denominations, starting from Rs. 1,000 up to Rs. 1 crore.
4. Validity: Electoral bonds are valid for a specified period of time during which they can be encashed by the political party.

Critics of electoral bonds argue that while they aim to promote transparency, they can also lead to increased opacity in political funding due to the anonymity of the donors. They claim that the lack of disclosure requirements for political parties regarding the source of their funding undermines transparency and accountability in the political process. However, supporters argue that electoral bonds provide a legal and transparent means for individuals and organizations to make donations to political parties without fear of reprisal or harassment.
HOW ELECTORAL BONDS WORKS

1. Introduction: Electoral bonds are a financial instrument introduced in India to enable transparent political funding. They were introduced by the Government of India in 2018 as a way to clean up political funding and increase transparency.
2. Issuer: Electoral bonds are issued by notified banks for specified denominations ranging from 1,000 to 1 crore rupees.
3. Purchase: Any Indian citizen or body incorporated in India can purchase these bonds after fulfilling the necessary KYC (Know Your Customer) requirements.
4. Anonymity: The key feature of electoral bonds is the anonymity they provide to the donor. The donor's identity is kept anonymous, and only the issuing bank is aware of the donor's details.
5. Validity: Electoral bonds have a validity period of 15 days from the date of issuance. During this period, they can be used to make donations to registered political parties.
6. Redemption: The bonds can only be redeemed by registered political parties within the stipulated validity period. They can be encashed in designated accounts of the political parties.
7. Transparency: While the identity of the donor remains anonymous, the political party receiving the donation is required to disclose the amounts of donations received through electoral bonds to the Election Commission of India.
8. Limitation: Electoral bonds are subject to certain limitations. They cannot be used to make donations to unregistered political parties, individuals, or trusts.
9. Regulation: The electoral bond scheme is regulated by the Reserve Bank of India (RBI) and the Election Commission of India to ensure compliance with the established guidelines and prevent misuse.
10. Criticism and Support: The scheme has faced criticism from various quarters, with concerns raised about the anonymity of donors potentially leading to opaque political funding. However, proponents argue that it provides a legitimate channel for corporate and individual donations while maintaining the privacy of donors.