What is Electoral Bonds UPSC

Learn about electoral bonds in Indian politics, their advantages, disadvantages, and the controversy surrounding them. Understand the impact on transparency and accountability in political funding.


Electoral bonds are a contentious issue in Indian politics. They were introduced by the government in 2018 as a way to bring transparency and accountability to political funding. However, critics argue that electoral bonds actually allow for anonymous donations to political parties, undermining democracy.

How Electoral Bonds Work

Electoral bonds are essentially a way for individuals and corporations to donate money to political parties. These bonds can be purchased from specified branches of the State Bank of India and are then deposited into the accounts of the political parties. The donor remains anonymous, and there is no disclosure of the identity of the donor.

Advantages of Electoral Bonds

  • Transparency: The government argues that electoral bonds bring transparency to political funding as all donations are made through banking channels.
  • No Cash Transactions: Electoral bonds eliminate the need for cash donations, reducing the possibility of black money entering politics.
  • Encouraging Legal Funding: By providing a legal route for donations, electoral bonds encourage political parties to seek funding through legitimate channels.

Disadvantages of Electoral Bonds

  • Opacity: Critics argue that the anonymity of electoral bonds allows for hidden influence on political parties by corporations and individuals with vested interests.
  • Lack of Accountability: With no disclosure of the identity of donors, political parties are not held accountable for their sources of funding.
  • Unequal Playing Field: Small and regional parties may struggle to attract donations through electoral bonds, leading to an uneven playing field in elections.

Case Studies and Statistics

According to data released by the Election Commission of India, the ruling party received the majority of donations through electoral bonds in the last few years. This has raised concerns about the influence of big corporations on political decision-making.


Electoral bonds are a complex issue with both advantages and disadvantages. While they aim to bring transparency to political funding, the anonymity they provide raises questions about accountability and fairness in the electoral process. The debate over the use of electoral bonds is likely to continue as the issue remains a hot topic in Indian politics.

Leave a Reply

Your email address will not be published. Required fields are marked *