Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

Electoral bonds cannot become parallel currency: Jaitley

Author: IANS/Thursday, March 9, 2017/Categories: Government

Electoral bonds cannot become parallel currency: Jaitley

New Delhi (IANS) - Finance Minister Arun Jaitley said that the electoral bonds announced in Union Budget 2017-18 to promote legitimate funding of political parties cannot become a parallel currency and thus would be valid only for a specific duration.

"An electoral bond cannot become a parallel currency; it will be valid only for a specific duration," Jaitley said while speaking on 'Towards a New Polity Campaign: Financial Reforms in India' at an event organised by Dr Syama Prasad Mookerjee Research Foundation and Nehru Memorial Museum and Library. The Reserve Bank of India (RBI) will issue bearer bonds that a donor may buy through cheques and digital payments. He or she can then give the bond to a political party which must deposit it within a month in a pre-determined account.

The Finance Minister said that political parties should start digital campaigns to receive donations and that the electoral bonds are totally clean, though partly transparent. To ensure greater transparency in political funding, the Union Budget 2017-18 announced that any anonymous cash donation to a political party will now be limited to Rs 2,000 -- a sharp drop from the Rs 20,000 limit earlier - above which they will have to resort to cheque and digital payments.
 
The decision of the government to reduce cash donations will require political parties receiving a donation above Rs 2,000 to disclose the identity of the donor. While this gives the donor the option of remaining anonymous, both ends of the transaction will happen through the banking system.

"The idea of electoral bonds has been closely debated within a small group of the government. With this there will be no quid pro quo," said Jaitley. Earlier, most of the political parties had been declaring that a majority of their donations were below Rs 20,000, and thus anonymous.
 
Jaitley had said that the government proposes to amend the RBI Act for issuing the electoral bonds under the new scheme to black money in political funding.

Print Rate this article:
No rating

Number of views (44)/Comments (0)

S Vijaykrishnan
S Vijaykrishnan

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.