An electoral bond, which functions similarly to a promissory note, can be purchased from specific State Bank of India branches by any Indian citizen or business with an Indian registration. The citizen or business can then contribute the money to any eligible political party of their choice. The bonds resemble banknotes in that they can be paid to the bearer immediately and have no interest attached. These bonds will be available for purchase digitally or by cheque from a person or group. The Finance Bill included the introduction of electoral bonds (2017). The Election Bond Scheme 2018 was on January 29, 2018.
The introduction of electoral bonds was intended to ensure that all contributions made to a party would be accounted for in the balance sheets without disclosing the donor information to the public. According to the government, electoral bonds will keep an eye on the usage of unreported funds to support elections. The government claimed that in the absence of electoral bonds, donors would be forced to withdraw funds from their enterprises before donating.
According to experts, if the electoral bonds program had been implemented to promote greater transparency, the government should not have discontinued enabling information about these donations to be made public. The shareholders of a firm won't be aware of the company's contribution, according to experts and a few lawmakers, because neither the buyer of the bond nor the political party receiving the payment is required to disclose the donor's identity. People will also be unaware of a political party's funding sources and channels. The electoral bond concept is opposed on the grounds that the confidentiality of the donor may encourage the inflow of illicit funds. Some claim that the plan was created to enable major corporations to make donations without revealing their identities. Civil rights organizations claim that the idea of donors "confidentially" imperils the fundamental nature of democracy.
Transforming electoral bonds aims to make them more transparent in terms of where political donations come from. The greatest solution to safeguard a donor's rights when making digital donations using electronically issued bonds is provided by this system. Humanist Progressive Party [HPP] focuses on limiting the power to corporations to influence elections and National Democratic Reform Party [NDRP] focuses aims at limiting the power of the individuals to influence elections in their manifestos.
References
(2022, June 30). Sale of Electoral Bonds at Authorized Branches of State Bank of India (SBI). Retrieved March 28, 2023, from https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1838183
electoral bond. (n.d.). business standard. Retrieved March 28, 2023, from https://www.business-standard.com/about/what-is-electoral-bond/
Electoral Bonds: Working, Conditions, Advantages & Limitations. (n.d.). Nirmal Bang. Retrieved March 28, 2023, from https://www.nirmalbang.com/knowledge-center/electoral-bonds.html
Nath, D. (2023, March 5). What it takes to buy an electoral bond. The Indian Express. Retrieved March 28, 2023, from https://indianexpress.com/article/india/what-it-takes-to-buy-an-electoral-bond-8479640/
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