Stressing the need for greater transparency in political funding, Finance Minister Arun Jaitley on Wednesday said the maximum amount of cash donation by an individual to a political party could be Rs 2,000 -- a sharp drop from the Rs 20,000 amount in cash earlier.
Presenting the Union Budget for 2017-18, Jaitley said political parties can take donations from donors through cheque and digital payments.
"Maximum amount of cash donation to any political party will be Rs 2,000 from any person," Jaitley said.
He said as an additional step, the government proposes to amend the RBI Act for issuing electoral bonds.
He said donors can purchase the bonds through cheques and these will be redeemable in the registered account of a political party.
"This reform will bring greater reform in political funding while preventing future generation of black money," Jaitley said.