Electoral Bond for Political Parties

An Electoral Bond is a financial instrument introduced in India to enable individuals and organizations to donate money to political parties in a transparent banking framework. These bonds are issued by the State Bank of India and can be purchased by donors, who then give them to eligible political parties. The party can encash the bond through its verified account. Electoral bonds are intended to reduce cash donations and improve accountability, but they have been controversial because they allow donor anonymity, raising concerns about transparency and potential influence on political decisions.