Explain Electoral bond in 500 words
Electoral bonds are a financial instrument introduced by the government of India in 2018 as a means to make political funding more transparent and accountable. These bonds are essentially promissory notes that can be purchased by any citizen or corporate entity to make donations to political parties. The bonds are issued by authorized banks and can be bought in denominations ranging from Rs. 1,000 to Rs. 1 crore.
The main objective behind the introduction of electoral bonds was to reduce the use of cash in political donations, which often leads to corruption and black money in the political system. By channeling donations through these bonds, the government aims to bring more transparency to the funding of political parties and ensure that only legal and accounted for funds are used for electoral purposes.
One of the key features of electoral bonds is that the identity of the donor is kept confidential. This means that the political party receiving the donation does not know the identity of the donor, which is intended to prevent any favoritism or bias towards a particular donor. However, the government and the authorized banks have access to this information, ensuring that the donations are legitimate and legal.
Another important aspect of electoral bonds is that they can only be encashed by registered political parties. This ensures that the funds are used for legitimate political activities and cannot be misused for personal gain or illegal activities. The bonds also have a validity period, after which they become invalid if not encashed by the political party.
One criticism of electoral bonds is that they allow for anonymous donations, which can potentially lead to increased influence of corporate entities and wealthy individuals on political parties. Critics argue that this lack of transparency can undermine the democratic process and lead to favoritism towards certain donors.
Despite these criticisms, the government has defended electoral bonds as a step towards cleaning up political funding and reducing corruption in the political system. The government has also claimed that electoral bonds provide a legal and transparent way for citizens and corporates to support political parties without fear of reprisal or discrimination.
Overall, electoral bonds represent a novel approach to political funding in India, with the potential to bring more transparency and accountability to the political system. While there are concerns about the anonymity of donors and the influence of corporate entities, the government is committed to improving the electoral process and ensuring that only legal and accountable funds are used for political activities.