Electoral Reforms In India

Electoral bonds likely to carry validity of 15 days


Mains Paper 2: Polity | Salient features of the Representation of People’s Act

From UPSC perspective, the following things are important:

Prelims level: Electoral bond, promissory note

Mains level: Black money usage in elections and ways to reduce it

Guidelines for electoral bonds

  1. To prevent misuse of proposed electoral bonds, the government is likely to cap the validity at 15 days within which such bonds — bearer in nature — have to be redeemed by political parties
  2. Such bonds would be bearer in nature so that those having it can encash through only one notified account within stipulated time
  3. As per the electoral bond mechanism, the proposed bonds will resemble a promissory note and not an interest-paying debt instrument

What does this mean?

  1. Each party will have one notified bank account
  2. All bonds are to be deposited in that particular account
  3. It is a paper currency and needs to be encashed in 15 days, otherwise, it loses validity

Effort to reduce black money usage in elections

  1. The short duration of bonds will ensure these cannot be misused and the objective of reducing the incidence of black money in political funding is achieved
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