The Central government launched the Electoral Bonds Scheme for political donations in 2018.

The scheme allows individuals or corporations to donate money anonymously to political parties through electoral bonds. 

Donors can buy bonds from specific branches of the SBI, and each bond can have a value of either 1000, 10,000, 1 lakh, 10 lakh, or 1 crore rupees. Donors retain complete anonymity.

The act also removed a limit on how much companies can donate to political parties. Earlier, any company’s donations to a political party couldn’t be more than 7.5 percent of its past three years profits. This limit was removed by the new act. 

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