Electoral Bond
Electoral Bond is a mode of funding to political parties in India. The scheme of Electoral Bond was introduced in The Finance Bill, 2017 during Union Budget 2017-18 when the maximum limit of cash donation to political parties was capped at ₹2,000 by Union Minister for Finance and Corporate Affairs, Arun Jaitley in a move to enhance the transparency of political party financing. He proposed to amend the Reserve Bank of India (RBI) Act in order to facilitate the issuance of electoral bonds by banks for the purpose of political funding. The proposal by Finance Minister also suggested taking action against political parties that fail to submit their tax returns. Although these parties are exempt from paying income tax, the act of filing returns could potentially enhance transparency within the system. Electoral Bonds were introduced specifically as an integral component of the Union Budget and hence classified as a Money Bill. According to the Indian Constitution, Money Bills are legislation that are exempt from the requirement of being "passed" in the Rajya Sabha, as the upper house is only permitted to offer commentary on such bills introduced in Lok Sabha. Although introduced in early 2017, the Department of Economic Affairs in Ministry Of Finance notified the Electoral Bond Scheme 2018 in a Gazette on 2 January 2018. According to an estimate, a total of 18,299 electoral bonds equivalent to a monetary value of ₹9,857 crore, were successfully transacted during the period spanning from March 2018 to April 2022. On 7 November 2022, the Electoral Bond scheme was amended to increase the sale days from 70 to 85 in a year where any assembly election may be scheduled. The decision on Electoral Bond (Amendment) Scheme, 2022 was taken shortly prior to the assembly elections in Gujarat and Himachal Pradesh, while the Model Code of Conduct was implemented in both the states. Ahead of 2019 General Elections, Congress has announced its intention to eliminate electoral bonds, If the party is elected to power. Features Electoral Bond is a type of instrument that functions like a Promissory Note and an interest-free banking tool. Any Indian citizen or organization registered in India can buy these bonds after fulfilling the KYC norms laid down by the RBI. It can be procured by a donor solely through the means of cheque or digital payments in various denominations, such as one thousand, ten thousand, one lakh, ten lakh, and one crore from specific branches of the State Bank of India (SBI). Within a span of 15 days of issuance, these electoral bonds can be redeemed in the designated account of a legally registered political party under the Representation of the People Act, 1951 (u/s 29A) which got at least 1% of the votes in the last election. The stanches of bonds will be available for purchase for 10 days in the month of January, April, July, and October with an additional time-frame of 30 days in the year of General Elections for Lok Sabha. Electoral bonds features