An Electoral Bond was a financial instrument introduced in 2018 by the Government of India to fund political parties. It was implemented during the rule of the Bharatiya Janata Party. Individuals and companies could purchase these bonds from the State Bank of India and donate them to eligible political parties. The donor’s identity was kept anonymous to the public, though the bank recorded it.
The government argued that the scheme aimed to reduce black money in elections by encouraging donations through the formal banking system. However, critics claimed it reduced transparency, allowed unlimited corporate donations, and increased the risk of favoritism and corruption. Opposition parties argued it gave an advantage to the ruling party.
In 2024, the Supreme Court of India struck down the scheme, stating it violated citizens’ right to information and weakened democratic accountability in political funding.
