Electoral Bonds

Electoral bonds are financial instruments used in India to make donations to political parties. They are like promissory notes that can be purchased from authorized banks and then donated anonymously to political parties, which can redeem them for funds. This system aims to increase transparency in political funding by regulating donations, although the anonymity feature has raised concerns about potential misuse and lack of accountability. Essentially, electoral bonds are a way to fund political campaigns while somewhat anonymizing the donor's identity, with the goal of reducing the influence of unaccounted money in politics.