What are Electoral Bonds?
Electoral Bonds are interest-free bearer bonds or money instruments that can be purchased by companies and individuals in India from authorized branches of the State Bank of India (SBI).
What are the denominations of Electoral Bonds?
Electoral Bonds are sold in multiples of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 crore.
How can Electoral Bonds be used?
These bonds can be purchased through a KYC-compliant account to make donations to a political party. The political parties have to encash them within a stipulated time.
Are Electoral Bonds anonymous?
Yes, Electoral Bonds are said to be anonymous as the name and other information of the donor are not entered on the instrument.
Is there a limit on the number of Electoral Bonds that can be purchased?
No, there is no cap on the number of electoral bonds that a person or company can purchase.
Who can receive funding via Electoral Bonds?
Political parties that secured at least 1% of the votes polled in the recent Lok Sabha or State Assembly elections and are registered under the Representation of the People Act (RPA) can receive funding via Electoral Bonds.
When can Electoral Bonds be purchased and encashed?
Electoral Bonds are available for purchase for a period of 10 days in a gap of four months (January, April, July, and October). They are also open for 30 days in Lok Sabha election years.
What are the challenges to the Electoral Bond scheme in the Supreme Court?
There are several challenges to the scheme, including claims that it violates the right to information, enables backdoor lobbying and quid pro quo, opens doors to shell companies, lacks full anonymity, promotes corruption, and differentiates between corporations and citizens, among others.
Has there been any change in the scheme over the years?
Yes, the government brought in amendments to several Acts to introduce the Electoral Bond Scheme via the Finance Act of 2016 and 2017, changing the rules regarding political donations.
