Question

Q. Which of the following statements is/are correct regarding the Electoral Bonds introduced in 2018?

Choose the correct answer using the codes given:

• A. 1 only
• B. 2 and 3 only
• C. 1 and 3 only
• D. 1, 2 and 3

Answer 1

The correct option is B 2 and 3 only

Explanation:

Electoral bonds are instruments/securities that are used to donate funds to political parties. The Electoral Bonds were notified in the year 2018. These bonds are on the lines of bearer bonds or promissory notes wherein the issuer (bank) is the custodian and pays the one who holds the bonds (political party).

The features of electoral bonds and the process involved are:

• The donor may approach these banks and purchase the bonds.
• The donor shall be permitted to buy the bonds through cheque/digital payment. Hence the identity of the donors is protected (if the donors are identified, they may get caught up in political rivalry-especially if the donor is a businessman). Hence the 2nd statement is correct.
• The donor donates these bonds to only registered political parties which have not secured less than one percent of the votes polled in the last general election to Lok Sabha or the state assembly. Hence the 1st statement is incorrect.
• The political party has to encash it into the account which is registered with the Election Commission of India. Hence the 3rd statement is correct.
• There is no obligation on the part of the donor (individual or corporate) or the political party to reveal where the donations come from.
• Electoral Bonds shall be valid for fifteen calendar days from the date of issue and no payment shall be made to any payee Political Party if the Electoral Bond is deposited after the expiration of the validity period.