Government of India notifies that SBI authorised to issue and encash Electoral Bonds through its 29 Authorised Branches

The Government of India (GoI) has recently notified that the State Bank of India (SBI) has been authorised to issue and encash Electoral Bonds through its 29 Authorised Branches from November 1 to 10, 2018. The bonds will be issued in multiples of Rs. 1,000, Rs. 10,000, Rs. 1 lakh, Rs. 10 lakh and Rs. 1 crore. As per provisions of the Electoral Bond Scheme 2018, Electoral Bonds may be purchased by a person who is a citizen of India or incorporated or established in India. Only the Political Parties registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) and which secured not less than 1% of the votes polled in the most recent Lok Sabha or State election , shall be eligible to receive the Electoral Bonds. Donors can donate the bonds to their party of choice which can then be cashed in via the party’s verified account within 15 days. It must be noted that an electoral bond is designed to be a bearer instrument like a Promissory Note — in effect, it will be similar to a bank note that is payable to the bearer on demand and free of interest.