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With reference to Electoral bonds, consider the following statements:
1. Electoral bonds are an instrument through which anyone can donate money to political parties.
2. It can be bought from any scheduled banks.
Which of the statements given above is/are correct?
- a)1 only
- b)2 only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
With reference to Electoral bonds, consider the following statements:1...
Electoral bonds:
Electoral bonds are a financial instrument introduced by the government of India in 2018 to facilitate transparent and legal political funding. These bonds are designed to be an alternative to cash donations made to political parties.
Statement 1: Electoral bonds are an instrument through which anyone can donate money to political parties.
This statement is correct. Electoral bonds allow individuals, companies, and organizations to donate money to political parties in a transparent and accountable manner. The bonds are available in multiple denominations, ranging from Rs. 1,000 to Rs. 1 crore, providing flexibility to the donors. These bonds can be directly purchased from specified branches of scheduled banks in India.
Statement 2: It can be bought from any scheduled banks.
This statement is incorrect. Electoral bonds can only be bought from specified branches of scheduled banks. The government has authorized certain branches of State Bank of India (SBI) to issue and redeem these bonds. The list of authorized branches is periodically updated and made available by the government. The bonds are issued in a digital form and are available for purchase during specific periods known as "windows" announced by the government.
Significance of Electoral bonds:
- Transparency: Electoral bonds aim to bring transparency to political funding by eliminating the use of cash donations. The bonds are issued in a digital form, ensuring a traceable trail of transactions.
- Accountability: Electoral bonds require the donor to disclose their identity and fulfill the necessary KYC (Know Your Customer) norms while purchasing the bonds. This helps in curbing black money and illegal funding.
- Privacy: The scheme maintains the privacy of the donor's identity, as the political parties do not have access to the information about the individual or organization making the donation. This protects the donor from any potential backlash or pressure.
Conclusion:
In conclusion, electoral bonds are indeed an instrument through which anyone can donate money to political parties, and they can only be purchased from specified branches of scheduled banks. These bonds have been introduced to promote transparency, accountability, and legal political funding in India.
Electoral bonds are a financial instrument introduced by the government of India in 2018 to facilitate transparent and legal political funding. These bonds are designed to be an alternative to cash donations made to political parties.
Statement 1: Electoral bonds are an instrument through which anyone can donate money to political parties.
This statement is correct. Electoral bonds allow individuals, companies, and organizations to donate money to political parties in a transparent and accountable manner. The bonds are available in multiple denominations, ranging from Rs. 1,000 to Rs. 1 crore, providing flexibility to the donors. These bonds can be directly purchased from specified branches of scheduled banks in India.
Statement 2: It can be bought from any scheduled banks.
This statement is incorrect. Electoral bonds can only be bought from specified branches of scheduled banks. The government has authorized certain branches of State Bank of India (SBI) to issue and redeem these bonds. The list of authorized branches is periodically updated and made available by the government. The bonds are issued in a digital form and are available for purchase during specific periods known as "windows" announced by the government.
Significance of Electoral bonds:
- Transparency: Electoral bonds aim to bring transparency to political funding by eliminating the use of cash donations. The bonds are issued in a digital form, ensuring a traceable trail of transactions.
- Accountability: Electoral bonds require the donor to disclose their identity and fulfill the necessary KYC (Know Your Customer) norms while purchasing the bonds. This helps in curbing black money and illegal funding.
- Privacy: The scheme maintains the privacy of the donor's identity, as the political parties do not have access to the information about the individual or organization making the donation. This protects the donor from any potential backlash or pressure.
Conclusion:
In conclusion, electoral bonds are indeed an instrument through which anyone can donate money to political parties, and they can only be purchased from specified branches of scheduled banks. These bonds have been introduced to promote transparency, accountability, and legal political funding in India.
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Community Answer
With reference to Electoral bonds, consider the following statements:1...
Chief Justice of India N V Ramana has assured petitioners that the Supreme Court will take up for hearing a pending plea challenging the Electoral Bond Scheme, 2018.
- Electoral bonds are an instrument through which anyone can donate money to political parties.
- Such bonds, which are sold in multiples of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 crore, can be bought from authorised branches of the State Bank of India.
- As such, a donor is required to pay the amount — say Rs 10 lakh — via a cheque or a digital mechanism (cash is not allowed) to the authorised SBI branch.
- The donor can then give this bond (just one, if the denomination chosen is Rs 10 lakh, or 10, if the denomination is Rs 1 lakh) to the party or parties of their choice.
- The political parties can choose to encash such bonds within 15 days of receiving them and fund their electoral expenses. On the face of it, the process ensures that the name of the donor remains anonymous.
Criticism
- critics argue that the anonymity of electoral bonds is only for the broader public and opposition parties.
- The fact that such bonds are sold via a government-owned bank (SBI) leaves the door open for the government to know exactly who is funding its opponents.
- This, in turn, allows the possibility for the government of the day to either extort money, especially from the big companies, or victimise them for not funding the ruling party — either way providing an unfair advantage to the party in power.
Hence only statement 1 is correct.
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With reference to Electoral bonds, consider the following statements:1. Electoral bonds are an instrument through which anyone can donate money to political parties.2. It can be bought from any scheduled banks.Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'A'. Can you explain this answer?
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