The Electoral Bond scheme was introduced by the Government of India in 2017 and put into effect on January 29, 2018. Electoral bonds are a financial method for donating to political parties. They function similarly to a certificate and are purchased from SBI. Through these bonds, donors can anonymously contribute to their preferred political parties.
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Electoral bonds are valid for only 15 days. Only political parties that have secured at least 1% of the votes in the last general election for the Lok Sabha or Vidhan Sabha are eligible to receive donations through electoral bonds.
Electoral Bonds List
Which party has received how much donations?
| Party | Donation (Rs crore) |
|---|---|
| BJP | 6,986.5 (highest 2,555 in 2019-20) |
| Congress | 1,334.35 |
| TMC | 1,397 |
| DMK | 656.5 |
| bjd | 944.5 |
| YSR Congress | 442.8 |
| TDP | 181.35 |
| SP | 14.05 |
| Akali Dal | 7.26 |
| AIADMK | 6.05 |
| National Conference | 0.50 |
| BRS | 1,322 |
Ban on Electoral Bonds
The Supreme Court has declared electoral bonds banned, citing a violation of the Election Bond Scheme and Article 19 (1) (A). The court emphasized the public’s right to know which government received how much money.
The court directed the State Bank of India (SBI) to provide all details of contributions made through electoral bonds to the Election Commission by March 31, 2024. Additionally, the Election Commission is instructed to share this information on its official website by April 13, 2024.
Supreme Court holds Electoral Bonds scheme is violative of Article 19(1)(a) and unconstitutional. Supreme Court strikes down Electoral Bonds scheme. Supreme Court says Electoral Bonds scheme has to be struck down as unconstitutional. https://t.co/T0X0RhXR1N pic.twitter.com/aMLKMM6p4M
— ANI (@ANI) February 15, 2024
Who Can Purchase Electoral Bonds and When?
Electoral bonds are issued in January, April, July, and October. Any citizen with a KYC-compliant bank account can purchase electoral bonds. The bonds do not bear the purchaser’s name.
It is of various denominations, ranging from Rs 1,000 to Rs 1 crore, and can be bought from SBI. However, SBI has faced significant setbacks due to the ban on electoral bonds.
How do Electoral Bonds Function?
These bonds are straightforward to use. Available in various denominations, such as Rs 1,000, Rs 10,000, Rs 100,000, and Rs 1 crore, these bonds are obtained from SBI. Donors with KYC-compliant accounts can purchase these bonds and later donate them to any political party. The recipient can then convert them into cash through their verified account. Electoral bonds are valid for only 15 days.
Who Receives Electoral Bonds?
All political parties in the country are eligible to receive bonds, provided they secured at least 1% of the votes in the last general election. The government aims to curb black money through these bonds and enhance transparency in electoral funding.
Origin and Purpose
The Electoral Bonds Scheme was introduced by the Central Government in Parliament through a finance bill in 2017. Following parliamentary approval, the notification of the scheme was issued on January 29, 2018. This scheme facilitates donations to political parties.
Also Read: Unveiling the Truth: Electoral Bonds Explained in SBI Affidavit to Supreme Court