Electoral Bonds were introduced by the current BJP government with an aim to track the funds raised by political parties. In January 2018, Finance Minister Arun Jaitely said in parliament that transparency will increase in terms of funds raised and the system of unclean money will be erased with Electoral Bond. This gave an uproar among the public as a hope of clean money-raising mechanism was started.
Electoral Bond was perceived as an alternative method to cash. However, when Right to Information (RTI) was raised to State Bank of India (SBI) revealed that there was 62% hike in the sale of the instruments in just last one year. The sale jumped from Rs 1,056 crore in 2018 to Rs 1,716 crore in January and March 2019.
An another a non-profit election research group- Association for Democratic Reforms (ADR) mentioned that out of Rs 215 crore fund generated from Electoral bond in 2017-18, the ruling party- BJP was the one that gained Rs 210 crore while opposition party Congress received only Rs 5 crore. ADR also stated that the funds donated to the party were coming only from wealthy families and corporate house, which is dangerous for democracy.