Electoral Bond is a financial instrument for making donations to political parties.
These are issued by Scheduled Commercial banks upon authorization from the Central Government to intending donors, but only against cheque and digital payments (it cannot be purchased by paying cash).
Electoral Bond (s) would be issued/purchased for any value, in multiples of Rs.1,000, Rs.10,000, Rs.1,00,000, Rs.10,00,000 and Rs.1,00,00,000 from the Specified Branches of the State Bank of India (SBI).
These bonds shall be redeemable in the designated account of a registered political party within the prescribed time limit from issuance of bond.
The bonds will likely be bearer bonds and the identity of the donor will not be known to the receiver.
The party can convert these bonds back into money via their bank accounts. The bank account used must be the one notified to the Election Commission and the bonds may have to be redeemed within a prescribed time period.
The Electoral Bonds under the Scheme shall be available for purchase for a period of 10 days each in the months of January, April, July and October, as may be specified by the Central Government. An additional period of 30 days shall be specified by the Central Government in the year of the General election to the House of People.
The Electoral Bond(s) shall be encashed by an eligible political party only through a designated bank account with the authorised bank.
As against a total non-transparency in the present system of cash donations where the donor, the donee, the quantum of donations and the nature of expenditure are all undisclosed, some element of transparency would be introduced in as much as all donors declare in their accounts the amount of bonds that they have purchased and all parties declare the quantum of bonds that they have received.
1. Which of the following statements is/are correct with respect to the Electoral Bonds?
1. Electoral Bonds will be issued from the Specified Branches of the State Bank of India (SBI).
2. The party can convert these bonds back into money via their bank accounts.
a) Only 1
b) Only 2