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The Reserve Bank of India (RBI) has asked Visa and Mastercard to stop commercial card transactions under the Business Payment Solution Providers (BPSP) business. 

Reasons for Stopping Commercial Card Transactions

• Incomplete KYC Details of Merchants: There are issues about transactions being conducted without appropriate invoicing or KYC protocols.
• Card-to-peer or card-to-business payments cases: There are instances of card-to-peer or card-to-business payments, such as bills or rent which are not allowed as it violates regulations. This occurs when merchants are either unregistered or not legitimate businesses.
• Violation of Point of Sale Transaction:  There are cases where payments are sent to one main merchant and then split up and sent separately to other merchants, which goes against the rules that say cards should only be used for point-of-sale transactions.

About Business Payment Solution Provider (BPSP)

• The BPSP service enables corporate credit card companies to make significant payments directly to vendors’ or merchants’ bank accounts.
• BPSP is a more recent payment method when compared to RTGS and NEFT.
• Features:  
  • It also offers debtors a credit period of 15-45 days.
  • Enables businesses to receive card payments even if they don’t have the necessary mechanism. 
• Regulatory Oversight: BPSPs are overseen and authorized by the RBI according to the PA-PG (Payment Aggregators and Payment Gateways) guidelines.

Benefits Of Business Payment Solution Provider (BPSP)

• High Liquidity: BPSP facility helps businesses to deliver businesses integrated e-Invoicing, ePayment and financing services which brings liquidity and drive cash flow for buyers and sellers. 
• Facilitation of Other Transactions: BPSP also helps business units to pay tax and bill’s payroll rent. 
• Improve Cash Flow: BPSP helps businesses to pay suppliers before the due date thus it is helpful in improving cash flow and leveraging early settlement discounts. 
• Enable B2B Payments: BPSP helps businesses to pay other suppliers (businesses) who don’t accept non- card at a reduced fee. In this way, it opens more trade ways for businesses. 

Drawbacks Of Business Payment Solution Provider (BPSP)

• Transparency and Accountability: The transparency of money moving through BPSPs, particularly for vendors who don’t accept cards, is unclear.
  • It makes it difficult to make sure that funds are used properly and to track where they ultimately end up.
• Fraudulence and Misuse:
  • BPSPs handle large volumes of commercial transactions. Therefore, there is a high probability of risks such as fraud, misuse, and money laundering. 
• Lack of legitimacy of vendors and suppliers:  BPSP has no proper information of Know Your Customer (KYC) compliance for merchant accounts and end users which creates problems in tracking the source of money. 

Difference Between Business Payment Solution Provider (BPSP) Route From Traditional RTGS and NEFT Transfers For Corporate Payments

News Source: Thehindubusinessline

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Recently the Prime Minister of India participated in the World Governments Summit 2024 in Dubai as Guest of Honour.

World Governments Summit 2024: Key Highlights

• World Governments Summit 2024 Theme: Shaping the Future Governments
• World Governments Summit 2024 Agenda: The World Governments Summit 2024 will focus on 6 main themes of discussion, 
  • Government Acceleration and Transformation: To ensure inclusivity and economic growth, policies must bridge the digital divide, ensuring benefits reach all society members amid rapid technological change.
  • Artificial Intelligence and The Next Frontiers: To Address the regulation, ethical design, and broader emerging trends in the AI ecosystem.
  • Reimagining Development and Future Economies by embracing new technologies, business models, and societal trends for building resilient, prosperous future economies.
  • Future Societies and Education: To  explore the connections between societies, education, and technology’s transformative potential. 
  • Sustainability and The New Global Shifts: The adoption of  sustainable practices for equitable, just, and resilient access to resources ie. food, energy, and water  while ensuring long-term prosperity.
  • Urbanization and Global Health Priorities: To  view cities as hubs of innovation and growth and to integrate modern mobility solutions and transform cities into futuristic, livable centers of progress.
• World Governments Summit 2024 Participation: The Summit saw participation of 20 world leaders, including 10 Presidents and 10 Prime Ministers. Delegates from over 120 countries were represented at the global gathering.

Prime Minister of India’s  Special  Keynote Address at World Governments Summit 2024

• Minimum Government, Maximum Governance: India leveraged digital technology to provide for a human- centric approach to governance with  focus on people’s participation, last-mile-delivery and women-led development to achieve an inclusive society.
• Approach to public service: To ensure  Ease of Living, Ease of Justice, Ease of Mobility, Ease of Innovation and Ease of Doing Business should be the approach of governance.
• Nature of governance: Focus of governance should be to prioritize Inclusivity, Tech- smart, Clean and Transparent, and Green Governments.

World Governments Summit

• About: It  is a neutral, non- profit  global knowledge exchange platform for governments
• Formation: It was established in 2013 under leadership of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, Ruler of Dubai
• Vision: To become a  global platform for shaping future governments and inspire and enable the next generation of governments.
• Function: The summit hosts events, forums, and roundtables throughout the year with an aim to  explore the agenda of the next generation of governments, focusing on harnessing innovation and technology to solve universal challenges facing humanity.

News Source: PIB

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Recently,Environmental groups petitioned the U.S. government seeking protection for the American horseshoe crab, a “living fossil”.

About Horseshoe Crab

• These are Marine and brackish water arthropods belonging to the Limulidae family.
• Ancient Origins : Thrived for over 450 million years, predating dinosaurs. 
• Appearance:
  • It resembles prehistoric crabs, but closer relatives are scorpions and spiders. 
• Habitat : They prefer shallow coastal waters with soft sandy or muddy bottoms.
  • Spawning: They migrate to intertidal beaches for spawning, primarily during summer-spring high tides. 
    • This timing ensures their eggs are deposited in moist sand, essential for development.

• Type of Horseshoe Crab Species & Habitat  

• • Atlantic or American horseshoe crab (Limulus polyphemus): 
    • Found on the Atlantic coast of the US and the Southeast Gulf of Mexico. 
    • IUCN Status: Vulnerable
  • Tri-spine horseshoe crab (Tachypleus tridentatus):
    • Coastal waters of Odisha (India), southeast Asia, China, and Japan. 
    • IUCN: Endangered
  • Coastal horseshoe crab (Tachypleus gigas): Similar range as the tri-spine species.
  • Mangrove horseshoe crab (Carcinoscorpius rotundicauda): Found in mangrove habitats of Southeast Asia.

Threats

• They face threats due to Commercial Harvest for food, bait & Biomedical Use and Habitat loss : Coastal Reclamation & Development, Shoreline Alteration, Climate change etc

Conservation Efforts To Horseshoe Crab

• In India: Placed in Schedule IV of the Wildlife (Protection) Act 1972 in 2009.
  •  This inclusion means that catching and killing a horseshoe crab is an offense. 

• IUCN Status

  • It placed them into the Red list of Threatened species.
  • It observes International Horseshoe crab Day on 20th June.

News Source: The Hindu

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Recently, the Indian Prime Minister met the President of the Republic of Madagascar on the sidelines of the World Governments Summit in Dubai. 

About Republic of Madagascar

• Location: Republic of Madagascar is located off the coast of East Africa in the Indian Ocean.
• Island Nation: Madagascar is the fourth largest island in the world, after Greenland, New Guinea and Borneo.
• Bordering Countries: Madagascar is bordered by:
  • East: The island country of Mauritius and Réunion
  • Northwest: Mayotte and the island country of Comoros
• Capital: Antananarivo
• Highest Point: Maromokotro 
  • The Ankaratra Massif is a major volcanic mass with the highest peak at 2,643 m.
• Major Rivers: Mananara, Mangoro Sambirano, Mahajamba, Betsiboka, Mania, north and south Mahavavy, Mangoky, Onilahy, and the Ikopa.
• Major Lakes: Alaotra, Lake Kinkony and Lake Ihotry.
• Major National Parks: Isalo and Masoala. 
  • Both of these parks are home to some of the island’s rare animals, birds, and fauna. Including the forever-famous lemurs that can only be found in Madagascar.  

News Source: PIB

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Recently, Indian Coast Guard Offshore Patrol Vessel (OPV) ICGS Varaha (indigenously built) made a significant port call at Maputo Port, Mozambique.

Indian Coast Guard ship ‘Varaha’ Makes Port Call in Mozambique

• This port call is a part of ongoing strategic overseas deployment to East Africa, marking a pivotal milestone in the ongoing diplomatic maritime engagements.
  • Port of call means an intermediate stop for a ship on its scheduled journey for cargo operation or transporting supplies or fuel.

About Mozambique

• Location: It is located in Southeastern Africa.
• Bordering Countries: It is bordered by six countries:
  • North: Tanzania
  • Northwest: Zambia and Malawi
  • West: Zimbabwe
  • Southwest: South Africa and Eswatini 
• Mozambique Channel: Mozambique also has a coastline on the Indian Ocean to the east. 
  • The island countries and territories of Madagascar, Comoros, and Mayotte are separated from Mozambique by the Mozambique Channel.
• Capital: Maputo
• Highest Point: Monte Binga (at 2,435 m)
• Major Rivers: Zambezi, Limpopo, Licungo, Lurio, Rovuma, Save and others.
• Major Lakes: Malawi (Nyasa)and Kariba.

News Source: IBG News

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The Odisha government added Gupteshwar forest division to the Biodiversity Heritage Site making it fourth in the biodiversity heritage site from the state.

Gupteswar Forest in Odisha Declared as Bio-Diversity Heritage Site

The state govt has asked the Odisha Biodiversity Board to prepare a long-term plan for intensive conservation and development of the forest.

• An amount of Rs 35 lakh has been provided to prepare an action plan and awareness-building activities in the localities.

What Is a Biodiversity Heritage Site?

• Biodiversity heritage site is a unique conservation approach recognized under section 37 of the Biological Diversity Act, 2002.
• Biodiversity Heritage Sites are well-defined areas that are unique, ecologically fragile ecosystems. 
• They are spread over terrestrial, coastal, inland, and marine waters having biodiversity as well as: 
  • Domesticated species
  • High endemism
  • Rare and threatened species, keystone species, species of evolutionary significance, wild ancestors of domesticated/ cultivated species.
  • Fossil beds Cultural, ethical, or aesthetic values for maintaining cultural diversity, with or without long human association with them.

Criteria For Identification of Biodiversity Heritage Site

• Areas that contain a mosaic of natural, semi-natural, and manmade habitats, which together contain a significant diversity of life forms.
• Areas that contain significant domesticated biodiversity components and or representative agro-ecosystem with ongoing agricultural practices that sustain this diversity.
• Areas that are significant from a biodiversity point of view as also important cultural spaces such as sacred groves/trees and sites, or other large community conserved areas.
• Areas including very small ones that offer refuge or corridors for threatened and endemic fauna and flora, such as community conserved areas or urban greens and wetlands.
• Areas that provide habitats, aquatic or terrestrial, for seasonal migrant species for feeding and breeding.
• Areas that are maintained as preservation plots by the research wing of the Forest department.
• Medicinal Plant Conservation Areas.

Significance of Biodiversity Heritage Site

• Ecological Security: Loss of biodiversity and bioresources show an increasing trend mainly due to human activities. 
  • Therefore, it is necessary to instill and nurture conservation ethics in the community.
• To Combat Climate Issues: BHS plays a crucial role in conservation which is particularly important in the face of increasing threats such as habitat loss, climate change, and invasive species.
• Cultural Heritage: BHS is associated with traditional knowledge and practices. Recognizing and protecting these sites helps to preserve cultural heritage and traditions.
• Maintenance of Ecosystem Services: BHS provides a range of essential ecosystem services, such as clean air and water, pollination, and flood control. 

News Source: Onmanorama and Indian Express

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The ‘Scheme Guidelines for Implementation of Pilot Projects for Use of Green Hydrogen in the Transport Sector‘ have been issued by the Ministry of New and Renewable Energy (MNRE).

Green Hydrogen Scheme Guidelines

• Use of Green Hydrogen as Fuel: The scheme will support the development of technologies for the use of green hydrogen as a fuel in buses, trucks, and four-wheelers with fuel cell-based or internal combustion engine-based propulsion technology
• Blending of Methanol or Ethanol: The scheme will also seek to support any other innovative use of hydrogen for reducing carbon emissions in the transport sector, such as blending of methanol or ethanol based on green hydrogen.
• Total Outlay: The scheme will have a total budgetary outlay of Rs 496 crore till the financial year 2025-26.

What Is Green Hydrogen?

• Green hydrogen is defined as hydrogen produced by the electrolysis of water, that is splitting water into hydrogen and oxygen using renewable electricity. 
• Aim: To limit global warming to 1.5C and reduce fossil fuel dependency by replacing green hydrogen.
• Production: Green hydrogen is traditionally produced from methane (CH4), split with steam into CO2 (Green House Gas) and H2 (Hydrogen).

News Source: Livemint             

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Ministry of Social Justice and Empowerment, to spread awareness, launches Nasha Mukh Bharat Abhiyan (NMBA) Vehicle for Delhi NCR. 

About Nasha Mukhta Bharat Abhiyan

• A vehicle dedicated to Nasha Mukhta Bharat Abhiyan was flagged off to spread awareness about drug abuse.
• Further ministry has initiated the ambitious Nasha Mukt Bharat Abhiyaan currently operational in 372 districts of the country to create awareness about the ill effects of substance abuse.
• Objective: To curb the menace of drug demand, the Ministry of Social Justice and Empowerment has been implementing the National Action Plan for Drug Demand Reduction
• Financial Assistance: Under NAPDDR, financial assistance is provided to State Governments/Union Territory (UT) for preventing education and awareness generation, capacity building, skill development, etc for drug demand reduction by States/UTs, etc.

Achievements Of Mukhta Bharat Abhiyan

• Spread of the Abhiyan: Around 8,000 volunteers have been selected and trained to lead the Abhiyaan activities in the 372 identified districts.
• Women contribution: The contribution of more than 2 crore women has been significant through the Anganwadi and ASHA workers, ANMs, MahilaMandals, and Women SHGs.

News Source: PIB

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This article is based on the news “Education Minister says APAAR to be aspirational and global document for students in India” which was published in the All India Radio. At the national conference on ‘APAAR ID: One Nation One Student ID Card’,  it was revealed that about 25 crore Automated Permanent Academic Account Registry (APAAR) have been created.

APAAR Scheme To Be Aspirational and Global Document For Students in India: Education Minister

• The Education Minister has said that the Automated Permanent Academic Account Registry (APAAR) will be the aspirational and global document for students in India.
• The interconnectivity of APAAR IDs, Academic Bank of Credit, and Digilocker has provided ease of operations.

APAAR ID Card: Automated Permanent Academic Account Registry 

• Definition: APAAR ID is a unique and permanent 12-digit ID given to every student .
• Nodal Ministry: Ministry of Education
• Features: It will be a lifelong ID number. 
  • It is an Education Ecosystem Registry or an ‘EduLocker’. 
  • It is an initiative introduced in alignment with the National Education Policy (NEP) of 2020 and the National Credit and Qualifications Framework (NCrF).
  • APAAR ID is linked to the student’s Aadhaar ID, although it does not replace it.
  • It streamlines the admission process when students get transferred between educational institutions nationwide.
  • It enables the students to seamlessly track their academic journey and achievements.
  • It aims to centralise academic data.
  • It acts as a digital repository for academic records, certificates, and other educational information.

• Beneficiaries of APAAR ID 

  • Individual Student/Lifelong Learner, Teacher and Parent
  • Individual School (UDISE/CBSE/ICSE/IB/State Education Boards)
  • Individual HEI (Universities/INIs, Autonomous Colleges, Stand-alone Institutes etc)
  • Public Skilling Entities (Skill India Digital/MoSDE/State Skilling Corporations or Councils)
  • Private Skilling Entities (EduTech Companies)
  • Regulatory Authorities (UGC, AICTE, ICMR, BCI etc., and the Ministry of Education)

• Working of APAAR ID

• • APAAR ID linkage with Academic Bank Credit (ABC): Every individual will have a unique APAAR ID, which will be linked to the Academic Bank Credit (ABC), which is a digital storehouse that contains information of the credits earned by students throughout their learning journey. 
  • Storing of certificates and credits: With the APAAR ID, students would be able to store all their certificates and credits, whether they come from formal education or informal learning. 
  • When a student completes a course or achieves something, it’s digitally certified and securely stored in her account by authorised institutions.
  • Ease in transfers: If the student changes schools, whether within the state or to another state, all her data in the ABC gets transferred to her new school just by sharing the APAAR ID. She won’t need to provide physical documents or transfer certificates.

Concerns Regarding APAAR Scheme

• Data Security: The issues regarding aadhaar data security, and instances of data breach have raised concerns about the scheme.
• Administrative Burden on Schools: Schools have been asked to create awareness about APAAR ID among parents and to inform them about its uses before taking their consent.
• Effect on Academics: The teachers are responsible for updating the students’ blood group, height, and weight in the Unified District Information System for Education (UDISE) database. There are chances that teachers would focus less on the academics of the students.
• Unrest among Teachers: The non-academic tasks given to teachers keeps increasing while the number of teachers remains inadequate.
• Consent issues: At any given time, students have the option to stop sharing their information with the mentioned parties, and their data processing will be halted. However, any personal data already processed will remain unaffected if consent is withdrawn.

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The health officials in Alaska have identified the first known death linked to a virus called Alaska Pox.

What is Alaska Pox?

• Alaska Pox is a rare viral infection caused by an orthopoxvirus first identified in Fairbanks, Alaska in 2015. 
• Impact: Less than 10 cases have been  reported so far, all linked to contact with small mammals like voles and shrews.
• Geographical Spread: It was first discovered in the Fairbanks area of Alaska, but the more recent case occurred in the Kenai Peninsula.

• Alaskapox Symptoms

• • Skin lesions (bumps/pustules) on face, hands, arms
  • Swollen lymph nodes, joint/muscle pain, fever, headache, fatigue
  • Mild in healthy people, can be more severe in immunocompromised.

• Transmission

  • Exact mechanism unknown, likely through bites/scratches of infected small mammals
  • Possibly spread by domestic pets that catch/eat infected rodents
  • No evidence yet of human-to-human transmission, but possible via direct contact with lesions

• Diagnosis & Treatment

  • No specific treatment or vaccine available
  • Supportive care for pain, wound care, preventing secondary infections
• Prevention: The Centers for Disease Control and Prevention recommends that people keep a safe distance from wildlife and wash their hands after being outside. Avoiding contact with wild rodents and their habitats.

News Source: Livemint

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This article is based on the news “ISRO to launch INSAT-3DS on Feb 17, will improve forecasts” which was published in the Indian Express. ISRO to launch INSAT-3DS on Feb 17 to improve forecasts. It is the third in a series of INSAT-3D satellites. 

• Its predecessors were INSAT-3D (launched in 2013), and INSAT-3DR (2016).

About INSAT-3DS

• It is designed for enhanced meteorological observations and monitoring of land and ocean surfaces for weather forecasting and disaster warning.
• Launch Details: INSAT-3DS mission is to be launched from Satish Dhawan Space Centre (SDSC) SHAR, Sriharikota, Andhra Pradesh.

• Funding:  Fully funded by the Ministry of Earth Sciences (MoES). 
• Collaboration: ISRO and the India Meteorological Organisation (IMD).
• Launch Vehicle: Geosynchronous Launch Vehicle (GSLV-F14). The GSLV aims at deploying the INSAT-3DS into the Geosynchronous Transfer Orbit (GTO).
• Augmentation: The satellite will augment the Meteorological services along with the presently operational INSAT-3D and INSAT-3DR satellites.

Aim of INSAT-3DS Mission

• To monitor Earth’s surface, carry out Oceanic observations and its environment in various spectral channels of meteorological importance.
• To provide the vertical profile of various meteorological parameters of the Atmosphere.
• To provide the Data Collection and Data Dissemination capabilities from the Data Collection Platforms (DCPs).
• To provide Satellite Aided Search and Rescue services.

INSAT-3DS Payload

• Imager Payload: INSAT-3DS Satellite carries a multi-spectral Imager (optical radiometer) capable of generating images of the Earth and its environment in six wavelength bands.
• Sounder Payload: Sounder will provide the information on the vertical profiles of the Atmosphere – temperature, humidity etc. 
• Data Relay Transponder (DRT): Receives globally Meteorological, Hydrological and Oceanographic data from automatic Data collection platforms/Automatic Weather Stations (AWS) from multi-user and relays back to the user terminal. 
•  Satellite-aided Search and Rescue (SA&SR) Transponder: Relays a distress signal/alert detection from the beacon transmitters for Search and Rescue purposes.

News Source: Indian Express

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This article is based on the news “Supreme Court strikes down electoral bonds scheme: ‘unconstitutional’, ‘arbitrary and violative of Article 14” which was published in the Indian Express.  The Supreme Court struck down the electoral bonds scheme asserting that the scheme violates the right to information under Article 19(1)(a) of the Constitution.

Background Of Electoral Bonds

• The electoral bonds were announced in the 2017 budget speech and notified by the government in 2018.
• It is an interest-free bearer instrument that would be used to donate money anonymously to political parties.
• This scheme was challenged shortly after it was notified in January 2018, by a number of parties, including the Communist Party of India (M), Common Cause and the Association for Democratic Reforms (ADR).
• In the past six years since the first petition was filed, six Chief Justices of India took office and twice- in 2019 and in 2021- the Supreme Court refused to stay the legislation.

Legal Timeline of Electoral Bonds: Court Proceedings and Judgments

• April 12, 2019: A three-judge SC bench issues an interim order directing political parties receiving donations through electoral bonds to submit details of the bonds to the Election Commission of India (ECI).
• March 2021: The SC, dismisses a plea to stay the sale of fresh electoral bonds, disputing the petitioner’s claim of “complete anonymity” for bond purchasers. The court mentions that operations under the scheme are not beyond scrutiny and highlights previous orders for safeguards.
• April 2022: The SC assures petitioners that the Court would take up the matter to hear the constitutional challenge to the electoral bonds scheme.
• Nov 2023: The Supreme Court reserved its judgement in response to a batch of pleas challenging the validity of the electoral bonds scheme.

About Electoral Bonds

• Electoral bonds are instruments in the nature of a promissory note or bearer bond which can be purchased by any individual, company, firm or association of persons provided the person or body is a citizen of India or incorporated or established in India.
• Introduction: It was introduced through the Finance Act, 2017, which in turn amended three other statutes – the RBI Act, the Income Tax Act and the Representation of People Act – to enable the introduction of such bonds.
• Key Features:
  • Denominations: The bonds are sold in multiples of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 crore, and State Bank of India is the only bank authorised to sell them.
  • Donor Anonymity: Donors remain anonymous, known only to the bank.
  • Donation Process: Donors can buy and subsequently donate bonds to a political party, which can encash the bonds through its verified account within 15 days.
  • Purchased Limits: There is no limit on the number of bonds an individual or company can purchase.
  • Unused Funds: If a party hasn’t cashed any bonds within 15 days, SBI deposits these into the Prime Minister’s Relief Fund.

Parameters Adopted By Supreme Court for Evaluating the Electoral Bond Case

• Whether the electoral bond scheme could violate the fundamental right to information under Article 19(1)(a) of the Constitution?
• Whether unlimited corporate funding violates free and fair elections?

Supreme Court’s Decision on Electoral Bonds

• Unconstitutionality of Electoral Bonds Scheme: In the case, Association for Democratic Reforms and Anr vs Union of India Cabinet Secretary and ors, SC held an unanimous view that the electoral bonds are “unconstitutional”.
• Violation of Right to Information: The Court held that the electoral bonds scheme due to its anonymous nature is violative of right to information and thus hits free speech and expression under Article 19(1)(a) of the Constitution.
• Quashing of Amendments: The court also quashed the scheme as well as amendments made to the Income Tax Act and the Representation of People Act which had made the donations anonymous.
  • The court further ruled that the amendment to the Companies Act which allows blanket corporate political funding is unconstitutional.

• Direction to the Electoral Bonds Issuing Body, ie. State Bank of India (SBI)

• • Immediate Cessation of Issuance: The SBI is directed to halt the issuance of electoral bonds with immediate effect.
  • Disclosure to Election Commission: SBI is required to submit a report to the Election Commission of India (ECI) on political parties funded through electoral bonds from April 12, 2019.
    • SBI must report to the ECI the dates and values of cashed electoral bonds by March 6, 2024.
  • Publication of Information: The ECI must publish the received information from SBI on its website by March 13.
  • Handling of Uncashed Electoral Bonds: Political parties holding electoral bonds that are still within the 15-day validity period but have not been cashed are required to return these bonds to the purchaser or SBI. 
    • Upon receiving the valid bonds back, SBI will refund the amount to the purchaser’s account.

Rationale Behind Supreme Court Judgement On Electoral Bond Case

• Access and Influence: Political contributions enhance access to legislators which translates to influence over policy making.
• Quid Pro Quo Risks: There is also a legitimate possibility that financial contributions to a political party would lead to quid pro quo arrangement due to the nexus between money and politics. 
• Violation of Right to Information and Article 19 (i)(a): The electoral bonds scheme prevents voters from being informed about which individual, company, or organisation has funded which party and to what extent. 
  • Right to information is not confined only to state affairs but also includes information necessary for participatory democracy. Political parties being relevant units in the electoral process, their funding information is essential for electoral choices.
  • The anonymity imparted by electoral bonds are violative of the right to information and Article 19(1)(a) of the Constitution.
• Economic Inequality Concerns: Economic disparities affect political engagement, and the lack of transparency in electoral bond donations can influence policymaking and foster quid pro quo arrangements.
• Inadequate Measure: The court ruled that electoral bonds which are aimed at reducing black money, fail to ensure political funding transparency due to their absolute exemptions.
• Limitations on Privacy Rights: Right to privacy for political affiliation does not extend to contributions made to influence public policy and applies only to contributions below the threshold.
• Corporate Funding and Political Influence: Amendments allowing unlimited corporate funding is deemed unconstitutional due to the disproportionate influence of businesses over politics. 
  • Deletion of Section 182 from Companies Act, which differentiated between loss-making companies and profit-making companies for the purpose of political contribution is arbitrary and violative of Article 14.
• Doctrine of Proportionality: The scheme fails the restrictive means test, indicating that alternative methods could achieve the stated objective of curbing black money without infringing on informational rights.

Conclusion

• There is a need to strike a balance between transparency and anonymity. Many jurisdictions achieve this by allowing anonymity for small donors while mandating disclosures for larger contributions.
  • For instance, in the UK, political parties must report donations exceeding £7,500 in a calendar year from a single source. Similar limits in the US and Germany are $200 and €10,000, respectively. 
  • This approach aims to protect small donors from potential victimisation and address concerns about quid pro quo arrangements with larger contributors.
• Effective regulation of political financing along with bold electoral reforms can break the vicious cycle of corruption and erosion of quality of democratic polity.

News Source: LiveLaw and IE

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