What's New

Electoral Bonds

@FILE PICS

News

• Electoral Bond sales to begin and in a statement, the Ministry of Finance stated that SBI has been given permission to issue and redeem Electoral Bonds during the thirty-first phase of the bond’s sale.
• The bonds have a fifteen calendar day validity period from the date of issuance and if the bonds are deposited after this time, no payment will be made to the political party payee. Same-day crediting of the Bond will occur for the eligible Political Party’s deposit in its account.
• Citizens of India can purchase the Bonds.
• The electoral bonds will only be available to registered political parties that received a minimum of 1% of the total votes cast in the most recent election for the State’s legislature, or Lok Sabha.

About Electoral Bonds

• With the passage of a Finance bill in 2017, the electoral bonds system was unveiled and put into effect in 2018.
• They provide a way for people and organizations to donate to officially recognized political parties while keeping donor anonymity.
• Features:
  • Bonds Denomination: Bonds in the denominations of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 crore and are authorized to be issued by specific SBI branches.
  • Interest Free and purchasing: Payable without interest to the bearer upon demand and can be acquired by individuals or companies based in India. It can be purchased separately or in conjunction with other people.
  • Political Party Eligibility: To be eligible to receive electoral bonds, political parties must be registered under Section 29A of the Representation of the People Act, 1951, and must have received at least 1% of the votes cast in the most recent general election for the Legislative Assembly or the House of the People.
  • Purchase and Encashment: Either digitally or with checks, Electoral Bonds may be acquired. Encashment only via a political party-approved bank account and redeemable within 15 calendar days of the date of issuance.
  • Accountability and Transparency: Parties are required to reveal their bank account information to the Indian Election Commission (ECI). Transparency is ensured by the use of banking channels for donations. Political parties are required to justify how they used the money they were given.

Source: Newsonair

Disclaimer: All efforts have been made to represent India accurately and as per India government. However, Universal School of Administration, Bengaluru and its associated people do not own any responsibility for the correctness or authenticity of the same.

Please notify on the email: [email protected] if any inconsistency is found for the factual correctness.