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(The Gist of PIB) Sale of Electoral Bonds at Authorised Branches of State Bank of India

(THE GIST OF PIB) Sale of Electoral Bonds at Authorised Branches of State Bank of India

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 SBI.

Electoral bond scheme was announced in Union Budget 2017-18 in an attempt to:
To curb black money and use of cash in political funding;
To eliminate fraudulent political parties that were formed on pretext of tax evasion.
Protects donor from political victimization due to nondisclosure of identity of the donor.

Allowed possibility of corporate misuse as it removes limits and disclosure requirements on Company donations to Political Parties.
Lack of level playing field in terms of political funding as it restricts the benefits of electoral bonds only to a few political parties.
Notably, in SC, Centre and EC had taken contrary stands on Electoral bonds.
Centre: Allowing anonymity in political funding will “promote transparency in funding and donation received by political parties”.
EC: This would “compromise transparency” and could lead to “increased use of black money for political funding through shell companies”.