The State Bank of India (SBI), the country’s largest public sector bank, has declined to reveal its Standard Operating Procedure (SOP) for the sale and redemption of electoral bonds. This decision comes after an activist filed a Right to Information (RTI) application seeking details on how the bank handles these bonds.
Understanding Electoral Bonds:
Electoral bonds were introduced in 2018 as a way to anonymously donate funds to political parties in India. The bonds are essentially bearer instruments, similar to cash, where ownership belongs to whoever possesses them.
What is an SOP?
A Standard Operating Procedure (SOP) outlines the specific steps and processes an organization follows for a particular activity. In this case, the SBI’s SOP for electoral bonds would detail how the bank handles the sale and redemption of these bonds, including procedures for verifying identity and ensuring proper documentation.
Why the RTI Request?
An activist, Anjali Bharadwaj, filed an RTI application requesting access to the SBI’s SOP for electoral bonds. Transparency advocates believe that disclosing these procedures is crucial for ensuring accountability and preventing potential misuse of anonymous donations.
SBI’s Reason for Refusal:
The SBI denied disclosing the SOP, citing “commercial confidence” as the reason. This legal principle allows companies to protect confidential information that gives them a competitive advantage. However, some argue that the SBI’s SOP for electoral bonds doesn’t necessarily fall under this category as it relates to a public service rather than a competitive market.
What This Means:
The SBI’s refusal to disclose its SOP has sparked debate:
- Transparency Concerns: Critics argue that the lack of transparency could create opportunities for fraud or misuse of funds in the electoral bond system.
- SBI’s Justification: The SBI maintains that the SOP is not confidential information but protects their internal processes.
The Supreme Court’s Role:
The Supreme Court of India recently ruled that the electoral bond scheme itself is unconstitutional. This decision might render the issue of the SBI’s SOP for these bonds moot. However, the debate surrounding transparency and accountability in political financing remains relevant.
Looking Ahead:
The SBI’s decision regarding its SOP for electoral bonds highlights the importance of transparency in public institutions and financial operations. While the Supreme Court’s ruling has changed the landscape, discussions on ensuring integrity in political funding are likely to continue.
