Explained: Electoral bonds: what are they?

Electoral bonds: what are they?

Interest-free bearer bonds, also known as money instruments, are available for purchase by individuals and organizations in India from authorized State Bank of India (SBI) branches.

The multiples of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 crore are used to sell these bonds. To donate to a political party, they can be bought using an account that complies with KYC regulations. The political parties have a deadline for encashing them.

Electoral bonds are considered anonymous as the donor’s name and other details are not recorded on the document.

The quantity of electoral bonds that an individual or business may buy is unlimited.

Through the Finance Acts of 2016 and 2017, the government amended four Acts to implement the Electoral Bond Scheme.

Who is eligible to receive money through electoral bonds?

The Election Commission of India (ECI) will verify the account of political parties registered under the RPA and with at least 1% of the votes cast in the most recent Lok Sabha or State Assembly elections. Within fifteen days following their acquisition, the bond amounts are deposited into this account.

The donation amount is transferred into the Prime Minister’s Relief Fund, and the political party must cash it within those 15 days. However, these bonds aren’t always available for purchase. Ten days are allotted to them throughout the course of four months (January, April, July, and October). When there is a Lok Sabha election, they are also open for 30 days.

Electoral bonds data: BJP biggest beneficiary followed by TMC, Congress: Check party-wise list here

Electoral bonds to political parties:

POLITICAL PARTY ELECTORAL BONDS (IN CRORE)
Bharatiya Janata Party                                 Rs 6060.50
Trinamool Congress                                      Rs 1609.50
Congress                                                                Rs 1421.90
Bharat Rashtra Samiti                                           Rs 1214.70
DMK                                                                          Rs 639
YSR Congress                                                          Rs 337
TDP                                                                           Rs 218.90
Shiv Sena                                                                 Rs 159.40
Rashtriya Janata Dal                                             Rs 72.50
Aam Aadmi Party                                                   Rs 65.50
Janata Dal-Secular                                                Rs 43.50
Sikkim Krantikari Morcha                                   Rs 36.50
Nationalist Congress Party                                  Rs 30.50
Jana Sena Party                                                     Rs 21
Samajwadi Party                                                   Rs 14.10
Janata Dal (United)                                         Rs 14
Jharkhand Mukti Morcha                                  Rs 13.50
Shiromani Akali Dal                                            Rs 7.30
AIADMK                                                                Rs 6.10
Sikkim Democratic Front                                  Rs 5.50
Maharashtra Gomantak Party                          Rs 0.60
National Conference                                           Rs 0.50

Why was the Election Bonds Scheme declared unconstitutional by the Supreme Court?

• The Supreme Court said the scheme violated the right to information of citizens, impacting free speech and expression.
• Political parties are required to repay any uncashed electoral bonds back to the original buyer.
• The electoral scheme would benefit the ruling political party, according to the Supreme Court.

Just a Brief Summary-

• The Supreme Court declares the electoral bonds program “unconstitutional” and invalidates it.
• SBI, the bank that issued the bonds, requested that they not be issued anymore
• According to the Supreme Court, the election plan will benefit the ruling political party.