New Delhi: Finance Minister Arun Jaitley has proposed to amend the Reserve Bank of India Act to enable the issue of electoral bonds as per a scheme the government would frame.
“An amendment is being proposed to the Reserve Bank of India Act to enable the issuance of electoral bonds in accordance with a scheme that the government would frame,” he said in the Lok Saha on Wednesday.
As per the scheme, a donor can purchase bonds from authorised banks against cheque and digital payments. They can be only redeemed in the designated account of a registered political party.
These bonds will be redeemable within a prescribed time limit from the date of issue.
“A notified bank will be issuing bonds and any donor can buy those bonds from cheque or by digital payment. So it is white, clean money, tax-paid money,” he said. “Those bonds by the donor can be given to the political parties. They will be redeemable within short period of time.”
The bonds would be redeemable in the notified account of a political party. “That means every political party recognised by the Election Commission will have to notify one account in advance to the Election Commission and this can be encashed and redeemed in that one account.”
Jaitley said the bonds would be “bearer in character because if names are disclosed, identities are revealed then it is as good as paying money through a cheque which is the present status quo.”
“In the present status quo, donors have preferred cash than cheque... present status quo has failed so you have to experiment with the new system. So it’s a new system... returns will have to be filed. The method of enforcement is very simple — you don’t comply with these regulations, you lose your exemption,” Mr Jaitley said.
The FM’s announcement comes after the Election Commission asked the Centre to amend the law to ban anonymous contributions of Rs 2,000 and above made to political parties.
