27. Are there provisions requiring donations to go through the banking system?

Indian Express [2017], Present system has failed, we are experimenting with a new system, says Arun Jaitley, February 2, 2017. 

The Election Commission of India (2019). Clarification - Revision of threshold Election Expenditure/Donation through cash transaction in a single day by the candidates/political parties above Rs. 10,000/- by Cheque, DD, RTGS/NEFT or other electronic mode etc. Available at: https://eci.gov.in/files/file/9345-clarification-revision-of-threshold-election-expendituredonation-through-cash-transaction-in-a-single-day-by-the-candidatespolitical-parties-above-rs-10000-by-cheque-dd-rtgsneft-or-other-electronic-mode-etc/  (Accessed: 02 April 2020).

Election Commission of India has introduced electoral bonds. 

"A notified bank will be issuing those bonds. Any donor can buy those bonds using cheque or digital money. These bonds can be given to the political party. Every recognised political party will have to notify one bank account in advance to the Election Commission and these can be redeemed in only that account in a very short time. These bonds will be bearer in character to keep the donor anonymous [emphasis added] (Indian Express, 2017)"

Expenditure exceeding Rs. 10,000/- (Ten Thousand) in connection with an election, consisting of a- single transaction or an aggregate of transactions, entered into with a single person/entity during the entire poll period shall not be incurred by a candidate/political party unless the payment in respect to the same is made by way of an account payee cheque or draft on a bank or account payee bank draft or by RTGS/NEFT or any other electronic. mode linked to the bank account of the candidate. 

Moreover, in respect of donations/contributions in cash received by the candidates from a single entity/person in a single or multiple transactions shall not exceed to Rs. 10,000/-' However, in the case of political parties the receipt from donations/contributions shall continue to be governed by the existing provisions of Section 29C of the R. P. Act, 1951.