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What is Electoral Bond

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Electoral bond is the bond which was issued by State bank of India through passing the finance bill in lok sabha by BJP Govt in 2017 during union budget by Arun jaitely for getting the donation for their parties. It works as promissory note. Any Indian person or company can buy in the form of Rs. 1000 or Rs. 10,000 or Rs. 1 lakh or Rs. 10 Lakh or Rs. 1 crore. Donor identity was not disclosed. Only parties who are under the representation of people act 1951. 

This bond had the validity of 15 days to donate and encashed through political parties.  

How Became Electoral Bond 

Electoral bond has made by SBI because Arun Jaiteley had amended RBI act to give power to RBI to publish Electoral bond like bank note. Arun jaiteley ameded representation of people act, companies act and income tax to achieve this goal. 

Total Donation Received through Electoral Bonds 

Rs. 9857 Crore through 18299 successful transactions

Process 

1. First indian person or company buy bond through his KYC

2. With in 15 days, he will send to whom political party, he wanted to donate.But it will available 10 days of month of april, july and oct. and 30 days in general election. 

3. If with in 15 days, deadline was not met, it will transfer to pm national relief fund. 


Current Status 

Now supreme court has stopped it because it realized it is unconstitutional. Supreme court had ordered to give all details of donors to election commission of India and ECI must publish in its public website. It had violated Indian consitution article 110. Supreme court judge also remove all the amendments in representation of people act, companies act and income tax because it violate the right to information act and voter's right to know the political funding. 

Related 

What is Sovereign Gold Bond (SGB)?

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Svtuition: What is Electoral Bond
What is Electoral Bond
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