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Electoral Bonds To Open For Sale On October 4: Check Eligibility, Process, And Where To Buy It

In an effort to make political funding more transparent, electoral bonds have been proposed as a substitute for financial contributions to political parties.

Electoral Bonds To Open For Sale On October 4: Check Eligibility, Process, And Where To Buy It File Photo

New Delhi: On October 4, 2023, the sale of Electoral Bonds Phase XXVII will begin. It will be accessible until October 13. Through its 29 authorized branches, the State Bank of India (SBI) offers the bonds for sale.

"State Bank of India (SBI), in the XXVIII Phase of sale, has been authorized to issue and encash Electoral Bonds through its 29 Authorised Branches (as per list enclosed) w.e.f. 04.10.2023 to 13.10.2023," the finance ministry stated in a statement.

What Is Electoral Bonds? 

In an effort to make political funding more transparent, electoral bonds have been proposed as a substitute for financial contributions to political parties.

What Is The Aim Of Launching The Electoral Bonds?

The introduction of the bonds in 2017 aimed to purge the nation's political fundraising structure. "Even 70 years after Independence, the country has not been able to evolve a transparent method of funding political parties, which is vital to the system of free and fair elections," stated Arun Jaitley, the country's then-finance minister, in his Budget Speech on February 1, 2017. Most of the money that political parties still receive comes from anonymous donations that are manifested as cash. Therefore, an effort must be undertaken to purge the Indian political funding system.

Electoral Bonds: Who Can Purchase It?

Any Indian citizen or organization incorporated or founded in the nation may purchase these bonds. The bonds may be purchased individually or in a group with other people.

Only after properly complying with all current KYC requirements and making payment from a bank account will the purchaser be permitted to purchase an electoral bond (or bonds). It won't include the payee's name.

Electoral Bonds: When It Can Be Purchased?

For a total of 10 days in the months of January, April, July, and October, the bonds can be purchased. The electoral bonds can now be purchased from October 4 to October 13.

Electoral Bonds: Who Can Receive It?

The only political parties eligible to receive electoral bonds are those that are registered under Section 29A of the Representation of the People Act, 1951, and that received at least 1 percent of the votes cast in the most recent Lok Sabha or state elections.

Electoral Bonds: How To Buy It?

The government-owned State Bank of India (SBI), which has 29 authorized offices, offers the bonds for purchase in multiples of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 crore.

Electoral Bonds: Where To Buy It?

Lucknow, Shimla, Dehradun, Kolkata, Guwahati, Chennai, Patna, New Delhi, Chandigarh, Srinagar, Gandhinagar, Bhopal, Raipur, and Mumbai all have authorized SBI branches.