ELECTORAL BONDS

ELECTORAL BONDS

Subject : Polity

Context : Electoral Bonds Won’t Be Stopped, Says Supreme Court Ahead Of State Polls.The court said it is not only the ruling party that is always the beneficiary of electoral bonds.

Concept :

• Electoral Bond is a financial instrument for making donations to political parties.
• The bonds are issued in multiples of Rs. 1,000, Rs. 10,000, Rs. 1 lakh, Rs. 10 lakh and Rs. 1 crore without any maximum limit.
• State Bank of India is authorised to issue and encash these bonds, which are valid for fifteen days from the date of issuance.
• These bonds are redeemable in the designated account of a registered political party.
• The bonds are available for purchase by any person (who is a citizen of India or incorporated or established in India) for a period of ten days each in the months of January, April, July and October as may be specified by the Central Government.
• A person being an individual can buy bonds, either singly or jointly with other individuals.
• Donor’s name is not mentioned on the bond.