DESCRIBE ELECTORAL BONDS; ALSO DESCRIBE THE CURRENT CONTROVERSY AROUND IT?

Electoral bonds are financial instruments used for making donations to political parties in India. They were introduced in 2018 by the Government of India as a means to promote transparency in political funding and to reduce the use of cash in political donations. Electoral bonds can be purchased from authorized banks in specified denominations, and individuals and corporations can use them to make contributions to political parties. The key features of electoral bonds include:

1. Anonymity: Donors can purchase these bonds without revealing their identity, and political parties can encash them through their designated bank accounts without knowing the identity of the donor.
2. Authorized Banks: Electoral bonds can be bought only from authorized banks, and the donor must have a verified KYC (Know Your Customer) account with the bank
3. Limited Validity: Electoral bonds have a limited lifespan during which they can be used. If not encashed by the political party within the specified period, they become invalid.
4. Transparency: The government claims that electoral bonds enhance transparency by reducing the use of cash in political donations, which can be difficult to trace.

Controversy surrounding electoral bonds:

1. Lack of Transparency: Critics argue that electoral bonds fail to provide true transparency as they allow donors to remain anonymous. They contend that this anonymity can be used to channel black money or unaccounted funds into political parties.
2. Impact on Democracy: Opponents of electoral bonds believe that they can potentially influence political decisions and policies, as the source of the funds is hidden from the public and even the recipient parties.
3. Government's Role: Some argue that the government's role in issuing and regulating electoral bonds could lead to a lack of independence in the process and could favor certain political parties.
4. Legal Challenges: Various legal challenges and petitions have been filed in Indian courts challenging the validity and constitutionality of electoral bonds.

CURRENT ISSUE- The anonymity of donors has led to accusations that it could potentially foster corruption and favoritism in politics. The donor's identity is not disclosed to the public or the Election Commission, which makes it difficult to track the origin of political contributions.

In summary, while the Indian government introduced electoral bonds with the aim of bringing more transparency to political funding, they remain a subject of controversy and debate due to concerns about anonymity, transparency, and their potential impact on the democratic process. The issue of electoral bonds continues to be a contentious one in Indian politics.

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