The Short-Lived Journey of Electoral Bonds in India

What is Electoral Bond Scheme?

One way to provide funds to Indian political parties is through the Electoral Bond Scheme. Then-finance minister Arun Jaitley included it in the Union Budget for 2017–18.

Any Indian national or business may purchase the bonds from designated State Bank of India (SBI) locations. Any political party that is registered with the Election Commission of India (ECI) may receive donations of the bonds. By using their assigned bank accounts, the political parties are able to cash the bonds.

Supreme Court Verdict

The Indian Supreme Court declared the Electoral Bond Scheme illegal on February 15, 2024. The Indian Constitution's Articles 14, 19(1)(c), and 21 were deemed to be violated by the Court.

The future of electoral funding in India

The Supreme Court's decision has raised concerns about how India would finance elections going forward. Plans to replace the Electoral Bond Scheme have not yet been made public by the administration.