Electoral Bonds

Electoral Bonds

Characteristics of Electoral Bonds

  • The bonds will only be issued by SBI
  • They are interest free banking instrument
  • bond will be like a bearer cheque which will facilitate donor’s anonymity
  • They will be available for any value in multiples of Rs 1000, Rs 1 Lakh , 10 Lakh, 1 Crore 
  • Electoral bond will have life of 15 days.
  • Purchase Period : Not available throughout the year =>  available 10 days of  each quarter
  • Parties eligible =  secured not less than one % votes in last election to Lok Sabha or Legislative Assembly.
  • Know Your Customer norm applicable
  • Also the bonds can be encashed by eligible political parties only through designated bank account 

Analysis of the working of Electoral Bonds

Government’s Argument

  • Provide anonymity to buyers => corporate houses can fund political parties legally without fear of retribution .  

Fears

  • Decreases Transparency : According to Election Commission of India, it is a retrograde step as far as transparency of donations is concerned .
  • According to RBI, Electoral Bond has the potential to increase black money circulation, money laundering and cross-border counterfeiting due to factors like anonymity .
  • Danger to Democracy : All banks report to the RBI which, in turn, is subject to the Central government . Hence, Electoral Bonds although anonymous but ruling party can ascertain  donors
  • Against equality : only those parties are eligible which have won 1% of votes in the preceding election, which pose a formidable entry barrier to new contenders 
  • Ruling party got 94.6% electoral bond cash => designed to help ruling party.

Invisible Number on Electoral Bonds Issue

  • Quint has confirmed that electoral bonds carry hidden alphanumeric numbers printed on them.
  • SBI : According to SBI, it is security feature only and Bank don’t keep any record of this number . 
OT 151W 
A ÉBANK OF i 
, Modotne Como Road, NM' 
LEC@RAL BO'- 
OF PROMISSORY NOTE) 
q.uzn.t•, 
OT 015102 
TATE OF 
@onstjtwed und 
la%Eank 1955) 
quant 
ELECTORAL BOND 
E FORM OFFRPN15SORY NC*hE) 
quant

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