 What is Electoral Bonds and how this brings transparency in political funding? To find answer to these questions watch this video continuously. First let's see why the Electoral Bonds was introduced in India. See before the introduction of Electoral Bonds if a political party received a donation of less than rupees 20,000 from your donor then it was not mandatory to reveal the source of funds. So this rule was misused by all the political parties. The political parties said that they received 90 percentage of their political fund in the denomination of less than rupees 20,000. Due to this large amount of black money went into electoral funding and used in the election process. So a huge amount of black money was generated and used in the election campaigning. Now coming to the Electoral Bonds according to the union government the Electoral Bond scheme was brought up to put check on the decades old under the table donations and to bring transparency and accountability in the system of political donations in the country. Now coming to the features of Electoral Bonds see Electoral Bond would be a bearer instrument in the nature of a promissory note which is also an interest free banking instrument. Now let's see who can purchase the bond. Here note that the Electoral Bond may be purchased by a person who is a citizen of India or it may be purchased by a body incorporated or established in India. Here the definition of person includes an individual or a company or an association of persons or a body of individuals or any agency office or branch owned or controlled by such person. Now coming to the question where Electoral Bonds can be purchased. See Electoral Bonds can be purchased for any value in multiples of thousand, ten thousand, one lakh, ten lakh and one crore from the specified branches of the state bank of India. See the purchaser would be allowed to buy Electoral Bonds only on due fulfillment of the KYC norms. Also note that Electoral Bond will not carry the name of payee. This provision of the scheme is hotly contested as it will lead to corporate funding of the elections. Now let's see who is eligible to get donation. See Electoral Bonds would have a life of only 15 days during which can be used for making donation only to the political parties registered under section 29A of the representation of People Act and the political parties which secured not less than one percent of the votes polled in the last general election to the Lokshaba or the State Legislative Assembly. See the bonds under the scheme shall be available for purchase for a period of 10 days each in the months of January, April, July and October. Note that an additional period of 30 days shall be specified by the central government in the year of the general election to the Lokshaba. Now coming to the redemption of bonds the bond shall be encached by any eligible political party only through a designated bank account with the authorized bank. I hope now you could be able to find the answer for the question what is Electoral Bond and how they bring transparency. To have a strong hold over current affairs, do watch Shankar AIS Academy's Hindu News Analysis regularly. Thank you.