Maximum amount of cash donations to political parties reduced to Rs 2,000

New norms aimed at making political funding transparent

In a major  boost to the process of cleaning election funding, Finance Minister Arun Jaitley announced that the maximum donations in cash to political parties have been reduced to Rs 2,000. Earlier political parties could receive cash donations to the tune of Rs 20,000. Jaitley stated that under the present system, a large number of anonymous donations were being made to parties.

Any donations above Rs 2,000 would have to be made either through cheques or through digital means. Jaitley further stated that the RBI Act would be amended to allow for the issuance of electoral bonds. These bonds