Electoral Bonds are turning out to become an eye of the storm from the recent past consider the foll...........

Indian Polity Elections

Electoral Bonds are turning out to become an eye of the storm from the recent past, consider the following statement regarding electoral bonds:

1. It is an interest free financial instrument.

2. A citizen of India or a body corporated in India can purchase it.

3. It can be purchased at an interval of 4 months .

Which of the above information is/are correct?

1 and 2 only

1 and 3 only

2 and 3 only

1,2 and 3

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Explanation:

What are electoral bonds? Electoral bonds will allow donors to pay political parties using banks as an intermediary.

Key features: Although called a bond, the banking instrument resembling promissory notes will not carry any interest. The electoral bond, which will be a bearer instrument, will not carry the name of the payee and can be bought for any value, in multiples of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh or Rs 1 crore.

Eligibility: As per provisions of the Scheme, electoral bonds may be purchased by a citizen of India, or entities incorporated or established in India. A person being an individual can buy electoral bonds, either singly or jointly with other individuals. Only the registered Political Parties which have secured not less than one per cent of the votes polled in the last Lok Sabha elections or the State Legislative Assembly are eligible to receive the Electoral Bonds.

Need: The electoral bonds are aimed at rooting out the current system of largely anonymous cash donations made to political parties which lead to the generation of black money in the economy.