- The government has announced a new tranche of electoral bond sales for a 10-day period beginning today through authorised State Bank of India branches across the country.
About the Electoral Bond Scheme
| Definition | Banking instruments for political party donations with donor anonymity. |
| Launch | 2017-18 Union Budget |
| Purchase Method | Select State Bank of India branches are open to Indian nationals and Indian-incorporated businesses. Can be purchased digitally or by cheque. |
| Donation Process | Purchasers of these bonds may contribute them to any eligible political party of their choice. |
| Denominations | Available in 1,000, 10,000, 10 lakh, and 1 crore increments. |
| KYC Requirements | Purchasers must meet existing KYC requirements and pay with a bank account. |
| Lifespan of Bonds | Bonds have a 15-day life to avoid establishing an alternative currency. |
| Identity Disclosure | Donors who provide less than 20,000 must not disclose personal information such as their PAN. |
| Redemption | Only qualifying political parties can pay in their Electoral Bonds at an Authorised Bank. |
| Eligibility of Parties | Only parties that meet certain criteria, such as receiving at least 1% of the vote in the last General Election, are eligible to receive Electoral Bonds. |
| Restrictions Lifted | According to the Companies Act, foreign and Indian corporations can now give without declaring their contributions. |
| Objective | To improve political fundraising transparency and ensure that cash collected by political parties are accounted for or clean money. |
Source: https://www.thehindu.com/news/national/government-kicks-off-new-year-with-fresh-electoral-bond-sales-from-january-2/article67696328.ece#:~:text=The%20original%20scheme%20envisaged%20sales,from%20January%2019%20to%2028.