Electoral Bonds: Why are they banned & how will it affect BJP?

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Key Points

This decision affects funding across party lines but is seen as a setback for the ruling BJP, which benefited the most from the scheme...

Indias Supreme Court has ruled that political parties can no longer raise funds using anonymous donation instruments called electoral bonds..

These bonds were not actual tradable instruments but allowed for contributions to be made by individuals or companies to a political party through a banking channel..

The court decided that contributions made for political funding cannot be anonymous and the electoral bonds are no longer a valid mode for donating to political parties..

While the courts decision may not have an immediate impact on the partys fiscal situation, it is an indictment of a scheme championed by the BJP and a blow to its anti-corruption credentials, which it has touted to great electoral effect over the past decade...

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