New Delhi: With an aim to cleanse the political funding system and check black money, Finance Minister Arun Jaitley on Wednesday proposed to restrict cash donations to political parties from individuals to Rs 2,000.
To achieve this aim, Arun Jaitley has proposed to introduce an ‘electoral bonds’ scheme.
What is ‘electoral bond’?
The electoral bonds, which will be issued by notified banks, can be redeemed by recognised political parties within a prescribed time limit.
“In accordance with the suggestion made by the Election Commission, the maximum amount of cash donation that a political party can receive will be
Rs 2,000 from one person,” Jaitley said in his Union Budget for 2017-18.
Political parties will be entitled to receive donations by cheque or digital mode from their donors,” Jaitley added.
Besides, the Budget proposed an amendment to the Reserve Bank of India Act to enable the issuance of electoral bonds in accordance with a scheme that the government would frame in this regard.
How would donor purchase the bond?
“Under the scheme, a donor could purchase bonds from authorised banks against cheque and digital payments only. They shall be redeemable only in the designated account of a registered political party. These bonds will be redeemable within the prescribed time limit from issuance of bond,” Jaitley said.
Political parties to file returns
Also, political parties have to file returns.
Political parties would know who has given the money and they will disclose in returns how much bonds they have got.
Bonds will maintain transparency
“Bonds will be bought through cheque and bonds will be encashed with banks. It will be clean money and transparent, as the buyer is known,” Jaitley said.
Source: Zee News