Electoral Bonds and Their Impact on Transparency

1. Definition of Electoral Bonds: Electoral bonds are financial instruments introduced in India to facilitate anonymous political donations. Donors purchase these bonds from specified banks and can then donate them to political parties.

2. Advantages:

• Anonymity: They ensure donor confidentiality, aiming to prevent coercion and influence.
• Ease of Use: Bonds are easy to purchase and donate, simplifying the funding process.

3. Limitations in Transparency:

• Lack of Disclosure: The anonymity feature limits transparency, as the public cannot know who is donating or the amount.
• Recent Concerns: For example, the 2022 revelations showed that a significant portion of political funding comes from electoral bonds, raising concerns about transparency and accountability.

Conclusion: While electoral bonds aim to streamline political funding and protect donor privacy, their capacity to enhance transparency is limited due to the lack of disclosure regarding donors and amounts.