The Union Ministry of Finance has authorised the State Bank of India (SBI), to issue and encash Electoral Bonds through its 29 Authorized Branches between 19 and 28 October 2020 in the 14th Phase of sale.
- Electoral Bonds will be valid for fifteen calendar days from the date of issue and no payment will be made to any payee Political Party if the Electoral Bond is deposited after expiry of the validity period.
- The Electoral Bond deposited by an eligible Political Party in its account will be credited on the same day.
About Electoral Bond
- The Government of India on January 2, 2018 had notified the Scheme of Electoral Bonds to cleanse the system of political funding in the country.
- Electoral Bond is a bearer instrument in the nature of a Promissory Note and an interest free banking instrument.
- A citizen of India or a body incorporated in India will be eligible to purchase the bond.
- Electoral Bonds are issued/purchased for any value, in multiples of Rs.1,000, Rs.10,000, Rs.1,00,000, Rs.10,00,000 and Rs.1,00,00,000 from the Specified Branches of the State Bank of India (SBI).
- The purchaser is allowed to buy Electoral Bonds only on due fulfilment of all the extant KYC norms and by making payment from a bank account.
- It does not carry the name of payee.
- Electoral Bonds have a life of only 15 days during which it can be used for making donation only to the political parties registered under section 29A of the Representation of the Peoples Act, 1951 (43 of 1951) and which secured not less than one per cent of the votes polled in the last general election to the House of the People or a Legislative Assembly.
- The Electoral Bonds under the Scheme are available for purchase for a period of 10 days each in the months of January, April, July and October, as may be specified by the Central Government.
- The Electoral Bonds are encashed by an eligible political party only through a designated bank account with the authorised bank.
(Source: PIB)
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