What is Electoral Bonds Scheme?
The Electoral Bonds Scheme was a financial instrument introduced by the Government of India for making donations to political parties. It allowed individuals and corporate entities to donate money to political parties anonymously, through bonds purchased from the State Bank of India (SBI).
Historical Background
The scheme was announced in the Union Budget 2017-18 and operationalized in January 2018. It was introduced with the stated aim of bringing transparency to political funding by encouraging donations through banking channels, replacing cash donations. However, it faced significant criticism for promoting anonymity and potentially increasing corporate influence.