Recently, Electoral Bonds are Frequently seen in News
From a #UPSC Prelims perspective, there isn't much to do for a PhD in this one area
Just Remember these Simple Basics and facts from exam point of view
A Thread 🧵

Introduction to Electoral Bonds
- Introduced via a Finance bill in 2017 and implemented in 2018
- Aim to facilitate anonymous donations to registered political parties.
Key Features
- Issued by the State Bank of India (SBI)
- Available denominations: Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 crore
- Interest-free and payable to the bearer on demand
- Purchase Eligibility: Indian citizens or entities established in India
- Purchase modes: Individually or jointly
- Validity period: 15 calendar days post-issuance

Issuance and Authorization
- SBI is the sole authorised issuer
- Available at designated SBI branches
Eligibility Criteria for Political Parties
- Must be registered under Section 29A of the Representation of the People Act, 1951
- Required to have obtained at least 1% of the votes in the last general election

Purchase and Redemption Process
- Electoral Bonds can be bought digitally or via cheque
- Redeemable solely through a political party’s authorized bank account
Transparency and Accountability Measures
- Political parties must disclose their bank account details to the Election Commission of India (ECI)
- Donations are channelled through banking systems to ensure transparency
- Parties are mandated to report on the use of funds received

Constitutional Concerns with Electoral Bonds
Right to Information Violation
- Conceals political funding sources from the public
- Contravenes Article 19(1)(a) of the Constitution
- Facilitates black money, foreign influence, and corporate sway in politics
Principle of Equality Violation
- Discriminates based on political parties’ vote share
- Benefits major parties over smaller, regional ones
- Creates an imbalance between influential donors and uninformed voters
Electoral Reform Scheme Violation
- Opposes the constitutional goal of reducing political corruption
- Ignores recommendations for increased funding transparency
- Conflicts with the Representation of Peoples Act, 1951, which mandates disclosure of political contributions and expenses

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