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Consider the following statements with reference to the electoral bonds scheme:
  1. It can be purchased by an individual or a business entity in cash or cheque from specific branches of any bank.
  2. All political parties registered with the election commission are eligible to receive donations through such bonds.
  3. The bonds are issued in two denominations of Rs. 10,000 and Rs.1,00,000.
Which of the statements given above is/are Correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    1 and 3 only
  • d)
    None
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements with reference to the electoral bond...
Electoral Bonds Scheme

The electoral bonds scheme was introduced in 2018 by the Indian government to make political funding more transparent. It is a financial instrument that can be purchased by an individual or a business entity in cash or cheque from specific branches of any bank.

Statements

1. It can be purchased by an individual or a business entity in cash or cheque from specific branches of any bank.

This statement is correct. Electoral bonds can be purchased from specific branches of State Bank of India (SBI) by an individual or a business entity in cash or cheque.

2. All political parties registered with the election commission are eligible to receive donations through such bonds.

This statement is incorrect. Not all political parties registered with the election commission are eligible to receive donations through electoral bonds. Only political parties that have secured at least 1% of the votes polled in the most recent Lok Sabha or State election are eligible to receive donations through electoral bonds.

3. The bonds are issued in two denominations of Rs. 10,000 and Rs.1,00,000.

This statement is correct. Electoral bonds are issued in two denominations of Rs. 10,000 and Rs.1,00,000.

Therefore, the correct answer is option D, i.e., none of the statements are correct.
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Community Answer
Consider the following statements with reference to the electoral bond...
An electoral bond is an interest-free banking instrument whereby a citizen or a business entity in India is eligible to purchase (either through cheque or digital payments) the bond from specific branches of the State Bank of India for 10 days each in months of January, April, July, and October. As per the business rules unveiled by the government in 2018, EB can be purchased by a person, who is a citizen of India or incorporated or established in India. Further, a person being an individual can buy electoral bonds, either singly or jointly with other individuals. Hence, statement 1 is not correct.
  • Only political parties registered under Section 29A of the Representation of the People Act, 1951 that have secured not less than 1 percent of votes polled in the last general election to the House of the People or the Legislative Assembly of the State are eligible to receive such donations. Hence, statement 2 is not correct.
  • Other highlights of EB are that the bonds will be valid for 15 days only and shall not carry the donor's name, although the payee will have to fulfil KYC (Know Your Customer) norms at the bank. What is important here is no report is required to be submitted by receiving parties in case of donations received via electoral bonds. In other words, neither donors nor political parties are legally bound to reveal the details of donations. Thus, opacity is ingrained with this new instrument for political funding.
  • Electoral bonds are available in the denomination of Rs. 1,000, Rs. 10,000, Rs. 1 lac, Rs. 10 lakhs and Rs. 1 crore. Almost 99 percent of donations received by political parties between March 2018 and January 24, 2019, were as electoral bonds of Rs 10 lakh and Rs one crore, a right to information (RTI) application revealed in November 2019. Hence, statement 3 is not correct.
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Consider the following statements with reference to the electoral bonds scheme: It can be purchased by an individual or a business entity in cash or cheque from specific branches of any bank. All political parties registered with the election commission are eligible to receive donations through such bonds. The bonds are issued in two denominations of Rs. 10,000 and Rs.1,00,000.Which of the statements given above is/are Correct?a)1 onlyb)2 onlyc)1 and 3 onlyd)NoneCorrect answer is option 'D'. Can you explain this answer?
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Consider the following statements with reference to the electoral bonds scheme: It can be purchased by an individual or a business entity in cash or cheque from specific branches of any bank. All political parties registered with the election commission are eligible to receive donations through such bonds. The bonds are issued in two denominations of Rs. 10,000 and Rs.1,00,000.Which of the statements given above is/are Correct?a)1 onlyb)2 onlyc)1 and 3 onlyd)NoneCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements with reference to the electoral bonds scheme: It can be purchased by an individual or a business entity in cash or cheque from specific branches of any bank. All political parties registered with the election commission are eligible to receive donations through such bonds. The bonds are issued in two denominations of Rs. 10,000 and Rs.1,00,000.Which of the statements given above is/are Correct?a)1 onlyb)2 onlyc)1 and 3 onlyd)NoneCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements with reference to the electoral bonds scheme: It can be purchased by an individual or a business entity in cash or cheque from specific branches of any bank. All political parties registered with the election commission are eligible to receive donations through such bonds. The bonds are issued in two denominations of Rs. 10,000 and Rs.1,00,000.Which of the statements given above is/are Correct?a)1 onlyb)2 onlyc)1 and 3 onlyd)NoneCorrect answer is option 'D'. Can you explain this answer?.
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