Breakdown of Electoral Bonds

The electoral bond scheme, introduced in 2017, revolutionised political funding in India by allowing individuals and corporate entities to donate unlimited sums of money to political parties anonymously. These bonds were purchased from designated branches of the State Bank of India in fixed denominations and handed over to political parties, who could cash them using a bank account without disclosing the donor's identity. However, concerns regarding transparency and accountability were raised, prompting calls for reforms.

Key features of the electoral bond scheme included anonymity for donors, a legal framework established through the Finance Act of 2017, and eligibility criteria for political parties to receive funding. Electoral bonds were available in various denominations and could be purchased during specific periods announced by the government. They had a validity of 15 days, and failure to encash them within this timeframe led to the donation being deposited into the Prime Minister's Relief Fund.
Despite government claims of promoting transparency, critics argued that the lack of disclosure regarding the identity of donors posed a threat to the democratic process. The scheme significantly impacted political funding, with many individuals and entities opting for electoral bonds as a preferred mode of donation.
In February, a landmark decision by the Supreme Court declared the electoral bond scheme unconstitutional, citing concerns over transparency and accountability. Parties can still receive donations directly from individuals and companies, albeit with limitations on value and anonymity. Electoral trusts also remain an option for donations, though disclosures are required. However, critics suggest that parties may still find ways to mask larger donations and circumvent election expenditure limits.
Overall, the electoral bond scheme represented a significant shift in political funding but also raised pertinent questions regarding transparency, accountability, and the integrity of the democratic process in India.
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• The Election Commission of India recently uploaded data on electoral bonds as received from the State Bank of India (SBI). This move is in compliance with a Supreme Court order and just ahead of the court-mandated deadline of March 15.
• The EC has consistently favored disclosure and transparency, as reflected in the proceedings of the Hon’ble Supreme Court3.
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  You can find the full list of donors disclosed by the SBI and made public by the Election Commission on their website3.