Electoral bonds

 Electoral Bonds  




What is Electoral bonds?


Electoral bonds are financial instruments introduced by the Government of India for making donations to political parties. They were created to promote transparency in political funding by allowing individuals and companies to purchase these bonds from specified branches of authorized banks using white money and then donate them to their chosen political party. The identity of the donor remains anonymous, and only the political party receiving the bond knows the donor's identity.


When electoral bond introduced 


Electoral bonds were introduced by the Government of India in January 2018 as a mechanism for making donations to political parties.


What are advantages and Disadvantage of electoral bonds 


Advantages of electoral bonds include:


  • Transparency: Electoral bonds aim to increase transparency in political funding by reducing the use of cash and ensuring donations are made through banking channels.


  • Anonymity for Donors: Donors can remain anonymous, which may encourage more individuals and corporations to contribute to political parties without fear of reprisal or influence.


  • Legitimate Funding: Electoral bonds help political parties receive legitimate funding through legal means, reducing the reliance on illicit or undisclosed sources.


Disadvantages of electoral bonds include:


  • Lack of Transparency: While electoral bonds promote transparency to some extent, the anonymity of donors raises concerns about the lack of full disclosure of funding sources.


  • Potential for Money Laundering: Critics argue that electoral bonds could be misused for money laundering purposes since the identity of the donor remains anonymous.


  • Unequal Access: Small and regional political parties may face challenges in accessing electoral bonds compared to larger, more established parties, potentially widening the funding gap between different political entities.

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