Electoral Bond Scheme

  • 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

DefinitionBanking instruments for political party donations with donor anonymity.
Launch2017-18 Union Budget
Purchase MethodSelect State Bank of India branches are open to Indian nationals and Indian-incorporated businesses. Can be purchased digitally or by cheque.
Donation ProcessPurchasers of these bonds may contribute them to any eligible political party of their choice.
DenominationsAvailable in 1,000, 10,000, 10 lakh, and 1 crore increments.
KYC RequirementsPurchasers must meet existing KYC requirements and pay with a bank account.
Lifespan of BondsBonds have a 15-day life to avoid establishing an alternative currency.
Identity DisclosureDonors who provide less than 20,000 must not disclose personal information such as their PAN.
RedemptionOnly qualifying political parties can pay in their Electoral Bonds at an Authorised Bank.
Eligibility of PartiesOnly 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 LiftedAccording to the Companies Act, foreign and Indian corporations can now give without declaring their contributions.
ObjectiveTo improve political fundraising transparency and ensure that cash collected by political parties are accounted for or clean money.
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