SBI: Authorisation to issue of Electoral Bonds

The Union Government authorised the State Bank of India (SBI) for issue of and encashing Electoral Bonds through its 29 Authorised Branches.

What are Electoral Bonds?

  • Electoral bonds are instruments through which anyone can donate money to political parties.
  • Electoral Bonds are valid for fifteen calendar days from the date of issue and no payment is made to any payee Political Party, if the Electoral Bond is deposited after expiry of the validity period.
  • The bonds that are not encashed by a party within 15 days are deposited by the SBI into the Prime Minister’s Relief Fund.
  • Electoral Bond deposited by an eligible Political Party in its account is credited on the same day.
  • The electoral bonds do not comprise of name of the donor. So, political party may not know about donor’s identity.
  • The party is allotted a verified account by the Election Commission of India (ECI) and the electoral bond are transacted through this account only.

Which party can receive Electoral Bonds?

If any party that is registered under section 29A of the Representation of the Peoples Act, 1951 and has got at least 1% of the votes polled in the most recent General elections or Assembly elections then it can receive electoral bonds.

Who sells the Bonds?

The bonds are sold by the authorized branches of SBI. Bonds can be purchased in the denominations of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh and Rs 1 crore. There is no maximum limit for purchasing bonds.

Who can purchase these bonds?

The bonds can be purchased by any citizen of India. It can be purchased for a period of ten days each in the months of January, April, July and October or as per specified by the Government.

Month: 

Category: 

Topics: 

Latest E-Books

Comments