In India, one way to donate to political parties is through electoral bonds, which are financial instruments. They were unveiled in 2018 with the intention of enhancing political funding’s accountability and openness. You can buy these bonds from specific approved institutions and utilise the proceeds to donate to political parties that are officially registered.
Electoral bonds’ salient characteristics are:
1. Privacy: Donors can buy these bonds in secret, and the beneficiary party is unaware of the donor’s identity. This was done in an effort to shield funders from any political pressure or possible blowback.
2. The legality: Electoral bonds are a legitimate way to donate to politics, and they don’t require the donor’s identity to be disclosed in public records.
3. Transparency: The government and authorised banks have access to the donor’s identify, even though it is not made public. This information is meant to aid in oversight and thwart illicit or anonymous fundraising.
4. Limited Validity: The time frame in which donations can be made with electoral bonds is restricted. These bonds come in designated denominations, and if they are not utilised within the allotted time, they become void.
5. Eligibility: Donations via electoral bonds are only available to officially recognised political parties. Election trusts, individual candidates, and other political bodies are not included in this.
Debates and worries about electoral bonds’ effects on accountability and transparency in political financing have been raised. Opponents contend that donor anonymity and the absence of real-time transparency provide risks for abuse and open doors for the influence of black money in politics. On the other hand, proponents contend that these bonds lessen the effect of unreported donations and represent a step towards a more official and respectable method of funding political activities.
To sum up, electoral bonds are a financial instrument used in India that allows political contributions to be made while preserving donor anonymity. However, there is continuous discussion about their efficacy in fostering transparency in political fundraising, and there is some controversy surrounding them.