Prelims Level
Mains Level

Why in news?

  • Government of India has notified the Electoral Bond Scheme 2018.

Provisions of the scheme:

  • Electoral Bonds may be purchased by a person, who is a citizen of India or incorporated or established in India. A person can buy Electoral Bonds either singly or jointly with other individuals.
  • Only the Political Parties registered under Section 29A of the Representation of the People Act, 1951 and which secured not less than one per cent of the votes polled in the last General Election to the House of the People or the Legislative Assembly of the State, shall be eligible to receive the Electoral Bonds.
  • The Electoral Bonds shall be encashed by an eligible Political Party only through a Bank account.State Bank of India has been authorised to issue and encash Electoral Bonds. Electoral Bonds shall be valid for fifteen calendar days from the date of issue.

Benefits:

  • Transparency in electoral funding
  • Cashless transactions
  • Easy and Quick medium of electoral donations

Terms and Conditions:

  • It may be noted that Electoral Bonds shall be valid for fifteen calendar days from the date of issue. No payment shall be made to any payee Political Party if the Electoral Bond is deposited after expiry of the validity period.
  • The Electoral Bond deposited by an eligible Political Party in its account shall be credited on the same day.

 

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