Electoral Bond Scheme For Political Funding 2018
With an aim to ensure that the political funding system is not corrupted, the central government announced the launch of the new scheme termed as the Electoral Bonds Scheme. The new scheme has been implemented by the central government after approval from the Finance Ministry. According to the sources, under the new scheme the central government aims at cleaning the entire system that is used for political funding.
- The new Bonding scheme was launched by the central government on 2nd January 2018 by Mr. Arun Jaitley. The announcement was officially made in a Press Briefing held outside the Parliament House.
- According to the finance Ministry anyone who is a valid citizen of the country by birth or any organization that is under Indian Jurisdiction is eligible to purchase or the bond for donations from any authorized SBI (State Bank Of India) branch.
- One of the main benefits of using the Political Bonds is that any one can use them for making donations and contributions to the political parties at the time of elections. But the names of the donors will not be revealed.
- The sources have also made it very clear that the bonds will be considered as a type of promissory note that will be offered to the beneficiary without being entitled for interest rates.
- Candidates or beneficiary who wants to purchase this bond will be able to purchase it in multiple denominations ranging from Rs 1000, Rs 10,000, Rs 1 lakh, Rs 10 lakh and Rs 1 crore.
- According to the latest statements made it is also clear that the bonds will not be entitled to any person in particular so it wont be printed with any donors name on it. The beneficiary party will be able to en-cash the bonds within a period of 15 days from the date of its issue.
- In order to take full benefit of the bonds it is important that the political party has to be registered under the Countries Election commission.
- It is also important that the party should have managed to gain at least 1 percent of elected votes, in the recent elections for either Assembly election or Lok Sabha elections.
- It is also important that to get the bonds cashed the political party should be holding a valid bank account via authorized bank. Before the elections the parties are expected to submit full details of their bank account.
- According to the statements made by the Finance Minister, making use of these political bonds will also ensure that complete transparency is maintained at the time of election funding process so only white money is used at the time of election campaign.
- People can purchase the Bonds during January, April, July and October months for a period of 10 days. Later on the government will also declare a 30 day additional period for purchasing.
Electoral Bond Scheme commences in July 2018
The central government finally starts transaction of electoral bonds on the 2nd of July, 2018. The task will be carried out through 11 selected State Bank of India (SBI) braches. All political parties, possessing these electoral bonds will have to get to any of these branches within following 15 days. Once this time is up, the bank will not make anymore payments. The Finance Department launched the Electoral Bond Scheme on 2nd of January, 2018. The official announcement has been done and bond holders are welcome to trade them for cash payment to the bank. The money transfer will take place on the day of deposition of these bonds.