Understanding Electoral Bonds: A Simple Explanation

February 2024, the Supreme Court of India decided this system wasn't fair. They felt people have the right to know who funds political parties. So, the electoral bond system was scrapped.

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Introduction:

Electoral bonds might sound like a complicated topic, but let's break it down into simple terms. Imagine you have a piggy bank where you keep your money safe. Electoral bonds are like special piggy banks for political parties to collect money for their campaigns.

What are Electoral Bonds?

Electoral bonds are like special tickets that people, companies, or organizations can buy and give to political parties instead of directly giving them money. These bonds are like vouchers that can be used only by political parties. They help keep track of who is giving money to which party.

How do Electoral Bonds Work?

Here's how it works: Let's say a company wants to support a political party. Instead of giving them cash directly, they buy an electoral bond from a bank. Then, they give that bond to the party. The party can then cash in the bond and get the money from the bank. It's a way to keep the donations transparent because the government knows who bought the bonds, but the parties receiving the money don't know who gave it.

Why were Electoral Bonds Introduced?

Electoral bonds were introduced to make political funding more transparent. Before, people could give money to parties secretly, which sometimes led to corruption or unfair advantages. With electoral bonds, the government can track where the money is coming from, but the parties still get the funds they need for their campaigns.

Criticism and Concerns:

Some people worry that electoral bonds might still allow for secret donations because only the government knows who buys the bonds, not the public. They also say that big companies might have too much influence because they can buy a lot of bonds and support their favorite parties without people knowing.

Conclusion:

In simple terms, electoral bonds are like special vouchers that people, companies, or organizations can buy and give to political parties instead of giving them cash directly. They help make political funding more transparent, but some people still have concerns about them. Overall, they're meant to ensure fairness in elections by keeping track of who is giving money to political parties.