Electoral Bonds – Simple Guide

Ever wondered how big companies give money to political parties without anyone knowing? That’s what electoral bonds are all about. They were introduced in India to make political donations cleaner, but many people think they actually hide money instead of showing it.

What are Electoral Bonds?

Think of an electoral bond like a prepaid card. A company buys the bond from a bank, usually State Bank of India, for a set amount – anything from ₹1 lakh to ₹1 crore. The bond doesn’t have a name on it, so the donor stays anonymous. The party that gets the bond can cash it in within 15 days of buying it, and the bank reports the transaction to the finance ministry, not to the public.

The idea was to replace cash hand‑outs and make the flow of money more traceable for the government. In theory, it should cut down on illegal cash, black money, and “secret” influence. In practice, the anonymity means voters can’t see who’s funding a party, which raises questions about accountability.

Why the Debate Matters

Critics say electoral bonds give big businesses a back‑door to sway policy. Since the donor’s name isn’t public, a party could receive huge sums and still claim no corporate influence. Transparency groups argue this goes against the spirit of a free and fair election, where voters need to know who’s trying to win their vote.

Supporters, however, claim the system protects donors from political retaliation and encourages legitimate, clean money into politics. They point out that the bonds are still recorded by the finance ministry, so the government can monitor overall spending.

Recent news has kept the topic alive. The Supreme Court has seen petitions asking to scrap the scheme, while the Election Commission has called for stricter disclosures. Meanwhile, big parties continue to cash in bonds every election cycle, and the amounts keep growing.

So, what should a regular voter do? First, stay informed about the source of a party’s money. Look for reports from reputable news outlets that track bond purchases. Second, pressure your representatives to demand more transparency – it’s easier to push for change when many people ask for it.

Bottom line: electoral bonds were meant to clean up political funding, but the lack of public disclosure keeps the debate alive. If you care about fair elections, keep an eye on how much money parties are getting and who’s behind it. Understanding this simple system can help you make smarter choices at the ballot box.