What is the meaning of Electoral Bonds, and what are their uses? Further, the essential thing is why it is necessary for the UPSC exam. There are many questions on mind. Understanding the Electoral Bonds Scheme in India is essential for the UPSC. One must know Electoral Bond’s basic details for the UPSC exam. Therefore, we have added all information on the Electoral Bonds. To get the best score in the exam, one needs to cover the entire syllabus. So, read the article and get all the necessary details. Further, with respect to the UPSC exam, one must try to cover all vital concepts. So, let us learn about the Electoral Bonds UPSC exam.
What is Electoral Bonds?
To begin with, Electoral Bonds are a financial instrument for making donations to political parties. It is a convertible note that can be obtained from the State Bank of India. Further, the citizen can donate the funds to any eligible political group. Besides, the Electoral Bonds are identical to banknotes.
The Supreme Court (SC) approved that the scheme secures the identity of purchasers of electoral bonds. However, purchases happened only through regular banking channels. Further, in 2019, the Supreme Court informed all the political parties to submit donations through electoral bonds to the ECI – Election Commission of India. Besides, the Finance Ministry reduces the window of purchasing electoral bonds from 10 days to five days. The ECI informed the Supreme Court of India that while it was not against the Electoral Bonds Scheme. But, it doesn’t approve any anonymous donations made to political parties.
Key Points
Below we have covered some of the vital points on the same. Try to understand more about the Electoral Bonds.
- As mentioned above, Electoral Bond is a financial instrument for making donations to political parties. These are like a promissory note that may be obtain by a person who is a citizen of India or established in India.
- Further, these bonds are issued by the notified banks and donors may approach these banks to purchase the bonds.
- These bonds are available in multiples of 1,000, Rs. 10,000, Rs. 1 lakh, Rs. 10 lakh and Rs. 1 crore without any maximum limit.
- It introduced with the Finance Bill, 2017, the Electoral Bond Scheme was notified on January 29, 2018.
- Further, a person or individual can purchase Electoral Bonds either singly or jointly with other individuals.
How to use Electoral Bonds?
Now let us know how one can use Electoral Bonds. First, the Electoral Bonds are assigned to the State Bank of India. Further, the SBI has been authorized to issue Electoral Bonds through its 29 Authorized Branches. Further, the bonds are given by the SBI in denominations of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and also Rs 1 crore. Later, one can purchase electoral bonds digitally or through cheques.
Further, it can be encashed by an eligible Political Party only through a Bank account with the Authorized Bank. Besides, these are valid for 15 days from the date of issue. Further, it is essential for users with a KYC-compatible bank to purchase. Further, some of the political parties didn’t even file the returns. Less action was taken against these political parties who delayed or haven’t filed the returns. However, the political parties continued to collect the funds through cheques and digital payments.
Challenges
As mentioned already, voters will not know who it can be, an individual, company, or organization that has funded which party. It prohibits political parties from taking donations from the government. Corporate Entities may not get the benefit of transparency as they might have to disclose the amount donated to the Registrar of Companies.
Advantages
There are some benefits to the use of Electoral Bonds.
- In the first place, with the use of electorals it helps political party with more transparency with the election commission, regulatory authorities and the public.
- Further, the purchase of the electoral bonds is possible only through a limited number of notified banks and through cheque and digital payments. As cash will not be encouraged.
- Besides, the individuals, groups of individuals, NGOs, religious and other trusts are permitted to donate via electoral bonds without disclosing their details.
- Lastly, donations that happen through Electoral Bonds will only be credited in the party account.
Controversy
According to the experts and politicians, neither the buyer of the contract nor the political party collecting the donation will reveal the donor’s identity.
Drawbacks
When we have advantages, there will be certain disadvantages within. So, with respect to the electoral bonds.
According to the RPA, it makes political parties disclose over Rs 20000. But, no law limits these parties from disclosing donations below Rs 20000. Further, the political parties have regularly delayed in submitting the audit reports to the ECI.
UPSC Exam Highlights
Like always, one question that arises in mind is, why is it important for the IAS exam? As we all know, the UPSC exam comes with a vast syllabus, and one must try to cover all essential topics to get the best results in the exam. Further, one must cover this particular topic to prepare themselves for the General Studies Paper-II. So, understand all essential points regarding these points. Therefore, this article will help you with your IAS exam preparation.
It is a good idea for one to refer to the previous year’s paper. By doing that, you will know about the question format, marks, and other details. One can also give mock tests. It will help you to understand your skills and how you can improve them. Then, books play a major role in any exam, so know which books are good for different subjects and study from them.
Further, there are many students and working professionals applying for the exam. This is one of the famous exams present in India, and it is believed to be one of the toughest exams current in India. There are three main rounds in the IAS exam: the prelims, the main exam, and the interview round. Therefore, one needs to go through all stages of the exam. Further, get all details of the exam by visiting the official site. Later, we have covered all information related to the IAS exam like exam syllabus, pattern, books, tips, etc. Read More.
Further, click here for more information on the IAS exam and UPSC.
Conclusion – Electoral Bonds UPSC
In the article, we have added all details related to the Electoral Bonds scheme in India. We have added information like the Electoral Bonds feature, why it is essential, what are the uses, and all the other details. It is also one of the vital concepts for the IAS exam, and this article will help you provide the necessary details. Therefore, make sure you have written down all points while reading the article. As we all know about the exam, one must work hard and make all efforts to clear the exam.
When we talk about the IAS exam study materials, there must cover various concepts. They all are essential with respect to the GS papers. One can find all details of the UPSC exam study materials here. We have tried to cover all essential acts, policies, and other details that are important for the exam. So, go through them and prepare well. It is vital to revise all regularly to remember the points. Also, try to go through the test series and solve them. It will give you the feel of the final paper.
FAQs – Electoral Bonds UPSC Exam
Know some FAQs below on the topic.
It is a financial instrument for making donations to political parties.
The State Bank of India.
Yes, it is essential for one to understand the Electoral Bonds for the GS papers.
One of the important things in the IAS exam is selecting the optional subject. One must select according to their skills and interests and one can go through the syllabus before choosing one.
Editor’s Note | Electoral Bonds
In brief, in the above article, you will go through details of the Electoral Bonds. It is one of the essential factors that are important for the IAS exam. You will also find all details of the IAS exam and the necessary links for the exam preparations. Further, with respect to electoral bonds, you will find all the necessary information, and the same will help you in the exam. It is essential for one to know all the basic details and remember the same for the exam. When we talk about the IAS exam one thing which comes to our mind is its syllabus. Therefore, it is important for one to study all concepts for the exam. One must properly plan and study for the exam. Good Luck with your exam, prepare well. One must not be get scared for the exam, one must give their complete efforts.
