Question

Enumerate the special features of electoral bond and analyze its role in bringing transparency in political party financing.

Answer 1

Approach:

1. Give an introduction about the electoral bond.
2. List down the special features of the electoral bond.
3. Discuss about the anonymity of funding through electoral bond.
4. Mention about the views of the election commission on the issue.
5. Provide appropriate conclusion.

Electoral bond:
Electoral bonds are bearer banking instruments for financing the eligible political parties. Persons willing to make donations to political parties has to buy these instruments from authorised banks and give it to the political parties. The political parties have to encash the donations in their bank accounts.

Features of the electoral bond:

• Only parties registered under RPA, 1951 with not less than 1% vote in the last general elections are eligible to receive the electoral bonds.
• Only Indian citizens and entities incorporated in India can purchase electoral bonds.
• All payments have to be made in Indian rupee.
• The bond will be valid for 15 days from the date of issue.
• It provides anonymity to the donor.
• The minimum amount is Rs. 1000 and there is no maximum limit.

Anonymity under the electoral bond:
The electoral bond will not bear the name of the donor which protects the right to privacy of the donor. On the other hand, the political parties will not disclose their source of funds received through the electoral bonds. But the political parties should file a return on its income through electoral bonds to the election commission. Thus the anonymity makes the political funding routed through the banking channel. The same anonymity is also the reason for encouraging political funding from unknown sources.

Election Commission on the Electoral bond:
The non-disclosure provision in the electoral bond is promoting the lack of transparency. Further the various amendments to legislation like the RPA, 1951, Foriegn contributions regulations act and the companies act, 2013 is paving the way for the black money routed through shell companies to the political parties. Thus according to the election commission the electoral bonds wrecked the transparency rather than promoting it.

Conclusion:
Electoral bonds are really breakthrough in the political funding in India. Though it has defects it can be resolved through progressive discussion among election commission, political parties and civil societies. Efforts should also be taken to analyze the possibility of public funding of elections in India.