TITLE : ELCETORAL BOND

The Evolution of Political Financing through Electoral

Bonds
INTRODUCTION
 Welcome to our presentation on Electoral Bonds.
 Electoral bonds are a relatively new concept in the realm of
political financing in India.
 Today, we'll delve into what electoral bonds are, how they
function, their pros and cons, and their impact on Indian
democracy.
What are Electoral Bonds?
 Electoral bonds are financial instruments for making donations to
political parties.
 Introduced in 2017 by the Government of India, electoral bonds
aim to bring transparency and accountability to political funding.
 These bonds are essentially bearer instruments like promissory
notes and are available in specified denominations.
 They can be purchased from specified branches of the State Bank
of India (SBI) and can be redeemed by eligible political parties.
: How do Electoral Bonds Work?
 Individuals and companies can purchase electoral bonds from
designated SBI branches.
 The buyer remains anonymous, and the identity is known only to
the bank.
 The bonds can then be donated to registered political parties
within the prescribed time frame.
 Political parties can encash these bonds in their designated bank
accounts
Process of Electoral Bonds
 Increased transparency: Donors' identities are shielded, but the
transactions are still recorded, adding a layer of transparency.
 Reduction in cash donations: Electoral bonds aim to curb the use
of black money in politics by promoting digital transactions.
 Encouragement of corporate donations: Companies can now
contribute to political parties without fear of repercussions or
favoritism.
Cons of Electoral Bonds
 Lack of transparency: While the transactions are recorded, the
anonymity of donors raises concerns about transparency and
accountability.
 Potential for misuse: Critics argue that electoral bonds could be
used to funnel black money into political parties, as the identity
of donors remains confidential.
 Exclusion of small donors: Electoral bonds primarily cater to
larger donors and corporations, potentially sidelining smaller
contributors
Impact on Indian Democracy
 Electoral bonds have sparked debates on the integrity of political
funding in India.
 While proponents argue that they enhance transparency and
formalize political donations, critics raise concerns about their
potential misuse and lack of accountability.
 The long-term impact of electoral bonds on Indian democracy
remains to be seen, as the system continues to evolve and adapt.
Conclusion
 Electoral bonds represent a significant shift in the landscape of
political financing in India.
 While they aim to bring transparency and accountability, concerns
regarding anonymity and potential misuse persist.
 The debate surrounding electoral bonds underscores the
complexities inherent in balancing transparency with the protection
of donor privacy and the integrity of democratic processes.