The Supreme Court has issued a directive to the State Bank of India regarding the issuance of electoral bonds.
Submission of Details to Election Commission
The directive includes the submission of all relevant details to the Election Commission by a specified deadline.
Definition of Electoral Bonds
Electoral bonds are financial instruments serving as promissory notes or bearer bonds, primarily used for contributing funds to political parties in India.
Issuing Authority and Process
The State Bank of India is the sole authorized entity responsible for issuing and encashing electoral bonds. The bonds are not printed by SBI but acquired from the government by its authorized branches.
Electoral Bonds Sales Statistics
Details from the SBI reveal the volume and value of electoral bonds sold since the inception of the Electoral Bond Scheme in 2018.
Printing Statistics
Statistics from the India Security Press, Nashik, indicate the quantity and value of electoral bonds printed within a specific time frame.
Tax Exemption
Donations made through the electoral bonds scheme enjoy complete tax exemption.
Confidentiality of Donor Identities
Both the bank and the political parties receiving donations through electoral bonds maintain confidentiality regarding the identities of the donors.
Unconstitutionality of Electoral Bonds Scheme
The Supreme Court has declared the electoral bonds scheme unconstitutional.
Verdict Details
A five-judge Constitution bench, headed by Chief Justice DY Chandrachud, unanimously delivered this verdict in response to various legal challenges against the central government’s electoral bond scheme.
Multiple Choice Questions (MCQs):
- Who is directed to stop issuing electoral bonds immediately?
- A) Reserve Bank of India
- B) State Bank of India
- C) Punjab National Bank
- D) ICICI Bank
- Answer: B) State Bank of India
- What is the deadline for the State Bank of India to submit details of electoral bonds to the Election Commission?
- A) March 1
- B) March 6
- C) April 12
- D) May 1
- Answer: B) March 6
- Which bank is authorized to issue and encash electoral bonds in India?
- A) HDFC Bank
- B) Axis Bank
- C) State Bank of India
- D) Bank of Baroda
- Answer: C) State Bank of India
- What percentage of printed electoral bonds were sold according to the SBI’s response to an RTI request?
- A) 30.1%
- B) 44.1%
- C) 55.9%
- D) 70.2%
- Answer: C) 55.9%
- What benefit do donations made through the electoral bonds scheme enjoy?
- A) 50% tax exemption
- B) 75% tax exemption
- C) 100% tax exemption
- D) No tax exemption
- Answer: C) 100% tax exemption
- Who maintains confidentiality regarding the identities of the donors contributing through electoral bonds?
- A) Only the bank
- B) Only the political parties
- C) Both the bank and the political parties
- D) None of the above
- Answer: C) Both the bank and the political parties
- Who headed the Constitution bench delivering the verdict on the electoral bonds scheme?
- A) Prime Minister
- B) Chief Justice DY Chandrachud
- C) President
- D) Chief Election Commissioner
- Answer: B) Chief Justice DY Chandrachud