Electoral Bonds have been proposed as a way of reforming election funding in the Union Budget 2017. Electoral bonds will be issued by a notified bank for specified denominations. Those who want to donate to a political party, can buy these bonds by making payments digitally or through cheque. Then they are free to gift the bond to any registered political party.
Concerns associated with electoral bonds:
- a) A dubious amendment was made in the subsection of 29(3) of the RPA,1951. The donation received is exempted from the section 29(c) of the RPA. donation received from electoral bonds is excluded from reporting. It is retrograde step and will decrease transparency.
- b) Amendment to the section 182(3) of the companies act, 2013 and removal of 7.5% of cap of net profit donation to political party will open the gate for creation of shell companies and inflow of black money.
- b) Govt. brought changes in the section 13 of the IT act and RBI act for not allowing cash donation above 2000 but still 29C , RPA was not amended to include the reporting of cash donation above Rs. 2000.