Bank Federation Challenges SBI’s Electoral Bonds Disclosure

The Bank Employees Federation of India (BEFI) has opposed the State Bank of India’s (SBI) plea for more time to disclose the details of electoral bonds to the Election Commission of India (ECI). The bank union has accused SBI of misusing public funds for political purposes and demanded transparency and accountability in electoral financing.

What are electoral bonds?

Electoral bonds are a form of anonymous donation to political parties. They were introduced by the Centre in 2018 as a way to curb black money in elections. The bonds can be purchased from SBI by any individual or entity and can be redeemed by any registered political party within 15 days. The identity of the donor and the recipient is not disclosed to the public or the ECI.

What is the controversy?

The electoral bond scheme has been challenged in the Supreme Court by various petitioners, including NGOs, activists and opposition parties. They have argued that the scheme violates the constitutional principles of free and fair elections, transparency, accountability and democracy. They have also alleged that the scheme favours the ruling party and enables quid pro quo arrangements between donors and politicians.

On February 15, 2024, the Supreme Court delivered a landmark judgment, declaring the electoral bond scheme as unconstitutional and manifestly arbitrary. The court also struck down legal amendments that allowed unlimited and anonymous corporate donations to political parties. The court directed SBI to furnish the details of electoral bonds purchased and redeemed since April 12, 2019, to the ECI by March 6, 2024.

However, on March 5, 2024, SBI filed an application seeking an extension of time till June 30, 2024, to comply with the court’s order. The bank cited practical difficulties in decoding and reconciling the information while maintaining anonymity, as mandated by the scheme. The bank claimed that it had issued 22,217 electoral bonds worth Rs 6,128 crore during the specified period and that retrieving and cross-referencing the data would require a massive exercise.

What is BEFI’s stand?

The BEFI, a national bank union representing over two lakh employees across public sector banks, has strongly criticised SBI’s move to seek more time. The union has accused SBI of acting as an agent of the Centre and facilitating political funding through electoral bonds. The union has also expressed concern over the misuse of public funds and resources for political purposes.

The BEFI has demanded that SBI should follow the Supreme Court’s deadline and disclose all the details of electoral bonds to the ECI without any delay. The union has said that delayed justice is denial of justice and that SBI should uphold its duty as a public sector bank. The union has also called for greater recruitment in the banking sector and an end to privatisation and corporatisation of banks.

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