Explain Electoral bonds in 500 words
Electoral bonds are a financial instrument introduced in India in 2018 to promote transparency in political funding. They were introduced as an alternative to cash donations made to political parties, with the aim of curbing the influence of black money in elections.
An electoral bond is a bearer instrument that can be purchased by any individual or entity from specified branches of authorized banks. These bonds can then be donated to a political party of the donor's choice. The bonds are available in multiple denominations, ranging from Rs. 1,000 to Rs. 1 crore (approximately $14 to $4 million).
The key feature of electoral bonds is that they are anonymous, meaning that the identity of the donor is not disclosed to the political party or the public. This provision was introduced to protect the privacy of the donors and prevent any potential backlash or harassment. However, it has also raised concerns about the lack of transparency in political funding.
Electoral bonds can only be purchased during specific periods, known as the "window" period, which is announced by the government. The bonds can be bought by any citizen of India or a corporate entity registered in India. However, foreign entities, government entities, and NRIs (Non-Resident Indians) are not eligible to purchase these bonds.
The bonds can be redeemed by political parties within 15 days of issuance. The funds received through electoral bonds can only be used for legitimate political activities such as election campaigns, meeting party expenses, and other party-related expenses. The bonds cannot be encashed or used for any other purposes.
One of the main advantages of electoral bonds is that they provide a legal and transparent channel for political donations. Previously, political parties relied heavily on cash donations, which often led to the circulation of black money and illegal funding. By introducing electoral bonds, the government aimed to bring in more accountability and traceability in political funding.
However, there are several criticisms and concerns regarding electoral bonds. One of the major criticisms is the anonymity of the donors, which raises questions about the potential for corruption and quid pro quo arrangements. Critics argue that without knowing the identity of the donors, it becomes difficult to track any potential influence or favors sought by the donors from the political parties.
Another concern is the lack of disclosure of political funding to the public. Unlike cash donations, which were required to be disclosed in the party's annual report, electoral bonds do not require any public disclosure. This lack of transparency has been a subject of debate and has raised concerns about the potential for misuse of funds.
Furthermore, the selection of authorized banks and the limited window period for purchasing electoral bonds has also been criticized. Critics argue that this restricts the accessibility and availability of the bonds, potentially favoring certain political parties or individuals.
In conclusion, electoral bonds were introduced in India as a means to promote transparency and accountability in political funding. While they provide a legal and transparent channel for political donations, concerns about the anonymity of donors and the lack of transparency in funding still persist. It remains to be seen how electoral bonds will evolve in the future and whether any amendments or reforms will be made to address these concerns.