Finance Minister Arun Jaitley in his Union Budget sought to bring more transparency and accountability in donations to political parties. 

b’Source: PTI’

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