SBI Seeks Extension for Electoral Bonds Details Submission to EC

SBI Seeks Extension for Electoral Bonds Details

VoM News Desk | March 4, 2024 | 09:51 PM IST | Breaking News, Courts & Law | Follow on Google News

SBI Seeks Extension for Electoral Bonds Details Submission to EC

SBI Seeks Extension for Electoral Bonds Details Submission to EC

The State Bank of India (SBI) has approached the Supreme Court, requesting an extension until June 30 to submit details of Electoral Bonds to the Election Commission of India (ECI). The bank cited practical difficulties in the decoding process due to stringent measures ensuring donor anonymity. The Constitution bench had earlier instructed the SBI to provide information on political parties that received Electoral Bonds since April 12, 2019, by March 6. SBI explained that retrieving data from different sources and matching donor information would be time-consuming, warranting an extension.

Challenges in Decoding Electoral Bonds

SBI highlighted the complexity of the “decoding” exercise, emphasizing the separation of issuance and redemption data into distinct silos. The maintenance of anonymity required separate databases for each process, making the retrieval and matching of information a time-consuming task. The bank clarified that details of purchases, including donor names, were not centrally maintained, and a three-week timeline would be insufficient for the extensive process.

Background on Electoral Bonds and Supreme Court Ruling

The Supreme Court previously struck down the Electoral Bonds Scheme, which permitted anonymous funding to political parties. The court directed SBI to cease issuing Electoral Bonds immediately. The bank was instructed to provide details of each encashed Electoral Bond, including date and denomination, to the ECI. The court’s ruling aimed at increasing transparency in political funding, and the subsequent extension request by SBI underscores the challenges in implementing these changes.

Impact on Political Funding

Electoral Bonds, as bearer instruments facilitating contributions to political parties, have faced scrutiny for their potential to allow unlimited and unchecked funding. The Supreme Court’s interventions seek to address these concerns by ensuring accountability and transparency in the financial transactions between donors and political entities. The extension request reflects the practical difficulties in navigating the intricacies of maintaining donor anonymity while complying with the court’s directives.

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