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        Case ID :
        Income Tax

        Electoral bonds scheme aims to cleanse the system of funding of political parties

        March 25, 2017

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        Electoral bonds scheme is one of the announcements made in the budget for the FY 2017-18 to cleanse the system of funding of political parties, wherein, an amendment is being proposed to the RBI Act to enable the issuance of electoral bonds in accordance with the scheme. Under this 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.

         This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha.

        Electoral bonds scheme creates bank-issued instruments purchasable by non-cash means and redeemable only into parties' designated accounts. Introduction of an electoral bonds mechanism by amendment to the RBI Act enabling authorised banks to issue bonds purchasable only by cheque or digital payment; bonds are redeemable only into the designated account of a registered political party and only within a prescribed time limit from issuance.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Electoral bonds scheme creates bank-issued instruments purchasable by non-cash means and redeemable only into parties' designated accounts.

                                Introduction of an electoral bonds mechanism by amendment to the RBI Act enabling authorised banks to issue bonds purchasable only by cheque or digital payment; bonds are redeemable only into the designated account of a registered political party and only within a prescribed time limit from issuance.


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