The government today finalised the terms of issuance of electoral bonds during the ongoing winter session of Parliament.
These bonds will be interest-free banking instruments like promissory notes that can be encashed by an eligible political party through a designated bank account, Finance Minister Arun Jaitley said in the Lok Sabha today.
Electoral bonds can be issued and purchased through select branches of the State Bank of India in multiples of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh and Rs 1 crore, Jaitley said. They can be bought during a 10-day window each in January, April, July and October.
The Narendra Modi government mooted the idea of electoral bonds in Budget 2017-18 to make political funding more transparent. The bonds were pitched as an alternative to cash donations made to political parties.
Also Read: BQExplains: How Do Electoral Bonds Work?
Jaitley, in his Budget speech, had said political parties won't be allowed to accept cash donations of over Rs 2,000. All donations above that amount would be made by cheque, digital payments, or through electoral bonds, which will be introduced in due course.
Also Read: Electoral Bonds A Disaster For Public Transparency: Milan Vaishnav
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