BUSINESS

Union Budget 2017: Cash Donations Above ₹2,000 To Political Parties Must Be Made Via Banks, Digital Payments

FM Arun Jaitley added that donors could purchase electoral bonds through cheques and these would be redeemable in the registered account of the political party.

01/02/2017 1:27 PM IST | Updated 01/02/2017 1:28 PM IST
VikramRaghuvanshi

NEW DELHI -- Stressing the need for greater transparency in political funding, Finance Minister Arun Jaitley on Wednesday said the maximum amount of cash donation by an individual to a political party could be ₹2,000 -- a sharp drop from the ₹20,000 amount in cash earlier.

Presenting the Union Budget for 2017-18, Jaitley said political parties can take donations from donors through cheque and digital payments.

"Maximum amount of cash donation to any political party will be ₹2,000 from any person," Jaitley said.

He said as an additional step, the government proposes to amend the RBI Act for issuing electoral bonds.

He said donors can purchase the bonds through cheques and these will be redeemable in the registered account of a political party.

"This reform will bring greater reform in political funding while preventing future generation of black money," Jaitley said.

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