New Delhi [India], July 3 : The State Bank of India (SBI) has been authorized to issue Electoral Bonds through its 29 branches starting Monday (today) and the sale will continue till April 12.
This is the 27th such issue.
Assembly elections in Rajasthan, Madhya Pradesh, Chhattisgarh, Telangana, and Mizoram are due later this year.
The government notified the Electoral Bond Scheme on January 2, 2018. Electoral bonds were introduced to "cleanse the system of political funding" in India.
The issuance of sales - the 26th tranche - happened in April ahead of the then-scheduled Karnataka assembly polls.
Such bonds are typically available for purchase for a period of 10 days each in the months of January, April, July and October, or as may be specified by the central government.
As per provisions, Electoral Bonds may be purchased by a person who is a citizen of India or incorporated or established in India. A person being an individual can buy Electoral Bonds, either singly or jointly with other individuals.
Only the registered political parties which secured not less than one per cent of the votes polled in the last General Election or the Legislative Assembly shall be eligible to receive the Electoral Bonds.
The Electoral Bonds shall be encashed by an eligible Political Party only through a Bank account with the Authorised Bank.
The Electoral Bonds are valid for fifteen calendar days from the issue date, and no payment shall be made to any payee Political Party if the Electoral Bond is deposited after the expiry of the validity period. The Electoral Bond deposited by an eligible Political Party in its account is credited on the same day.
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