Electoral Bonds: Working, Conditions, Advantages & Limitations
What is an Electoral Bond?
An electoral bond was announced in the Union budget 2017-18, is an effort made to donate to political parties. The general public can also issue these bonds to fund through eligible political parties.
Electoral Bond is a financial instrument for participating donations to political parties. A political party eligible to run campaigns must register in the people Act, 1951 of representation under section 29A. Government notified the scheme on January 2018 year.
The political party can convert these bonds back into money via their bank accounts. The bank account used must be notified to the Election commission and the bonds may have to redeem within a prescribed period of 15 days.
What are the Conditions of Electoral Bonds?
1. Any part registered under section 29A of the representation of the people’s act, 1951 and has secured at least one per cent of the votes polled in the most recent general elections entitled to receive electoral bonds.
2. The electoral bonds will not bear donor name; thus, the political party might not be aware of the any donor’s identity.
Advantage of Electoral Bond
1. All electoral bonds issued are to be reform deemed by a bank account that commission of India has disclosed.
2. The widespread use of electoral bonds can hold to hold back political parties who operate on the basis of simply collecting funds from public.
3. Electoral bonds work with the government goal to make election funding entirely safe, secure and digitized.
4. All payment transaction of electoral bonds is carried out via cheques or digitally.
Disadvantage of Electoral Bonds
1. Some critics say that electoral bonds have been brought into operation with the primary goal of choking the fund of opposite parties.
2. Electoral bonds do not threaten financially stable, the goal of such companies is to fund one political party over the other.
Who can issue Electoral Bonds?
An Indian corporate body, registered agency or undivided Hindu family can issue an electoral bond by donating funds to political parties as per their choices as eligibility to the campaign.
When you can purchase electoral Bonds?
The electoral bonds are available to purchase for 10 days at the beginning of every quarter. The first ten days of January, April, July, and October is the particular time specified by the government.
The government shall specify an additional time period of 30 days for electoral bonds.