Finance Minister Arun Jaitley on Saturday said the government will come out with a framework on the electoral bonds scheme after detailed discussions with RBI and other stakeholders. “I have explained what the government has in mind with regard to the electoral bonds. Now the whole scheme itself … will be after discussing with the RBI as to which is the designated bank, what is the duration of the bond, at what period of time, for how long it should be open before every election,” he said after addressing the RBI board meet.
Now these are all minor details which will form part of the scheme that will come out after a detailed discussion, he added. In Budget 2017-18, the government proposed amendment to the RBI Act to enable issuance of electoral bonds.
The government will amend the Representation of People Act to ensure secrecy of the electoral bond buyers, and soon notify the banks that will be eligible for issuing such bonds, besides coming out with guidelines for the same by March.
The bonds, which will resemble a promissory note and not an interest-paying debt instrument, will be sold by authorised banks and can be deposited in notified accounts of political parties within the duration of their validity.
So, every political party recognised by the Election Commission will have to notify one account in advance to the Election Commission and bonds can be encashed and redeemed in that one account.
Issuance of electoral bonds would ensure that only legitimate, tax paid, accounted money comes into the political system, Jaitley had said.