What are electoral bonds ? Are they capable of bringing transparency in the political funding system? (Answer in 125 words)

by

Points to Remember: Electoral Bonds, Transparency, Political Funding, Anonymous Donations.

Introduction: Electoral bonds are instruments introduced in India to allow anonymous donations to political parties. The aim was to bring transparency to political funding, replacing largely unregulated cash donations. However, their efficacy remains debated.

Body:

  • Mechanism: Electoral bonds are purchased from designated banks by individuals or companies, who then donate them to political parties. The donor’s identity remains undisclosed to the public.
  • Transparency Concerns: While aiming for transparency, the anonymity of donors raises concerns about potential for money laundering and corruption. The lack of public disclosure undermines accountability.
  • Counterarguments: Proponents argue that it encourages greater participation in political funding by shielding donors from potential harassment.

Conclusion: Electoral bonds present a complex picture. While aiming to improve transparency, the anonymity feature undermines this goal. Strengthening regulatory oversight and potentially introducing a threshold for disclosure could improve the system’s effectiveness and promote greater accountability in political financing, fostering a more transparent and ethical political landscape.

UPPCS Notes brings Prelims and Mains programs for UPPCS Prelims and UPPCS Mains Exam preparation. Various Programs initiated by UPPCS Notes are as follows:- For any doubt, Just leave us a Chat or Fill us a querry––