Question

Electoral bonds of what denominations to be issued for political funding

Answer 1

The Electoral bonds of the multiples of one thousand, ten thousand, one lakh, ten lakh and one crore for political funding.

ELABORATION-

• Electoral bond is similar to a promissory note. It is payable to the bearer as per his demand. Also, it is free from interest.
• They are used for political fundings

because they are a good medium for a transparent transfer of money to the political parties and also for bringing them under the taxation system of India.

• As per the electrol bond scheme of 2018, a registered political party which has secured more than 1% votes in the preceding election is entitled to have these electoral bonds.

• They can be issued only by an authorised account in an authorised bank.