Finance Minister Arun Jaitley in his Union Budget sought to bring more transparency and accountability in donations to political parties.
Here’s what he announced:
- Cash donations to political parties from one source cannot exceed Rs 2,000. The cap earlier was Rs 20,000.
- Political parties can however receive donations in cheque and digital modes.
- RBI Act will be amended to enable issuance electoral bonds. Donors can purchase bonds against cheques and digital payments, redeemable against maturity