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

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.