Srinagar, Oct 4: The State Bank of India (SBI) will be opening its electoral bonds for sale from tomorrow for the next 10 days.
According to a Finance Ministry official statement, “The State Bank of India (SBI), in the XXVIII Phase of sale, has been authorised to issue and encash electoral bonds through its 29 authorised branches (as per the list enclosed) w.e.f. October 4-13.”
As per the official statement the electoral bonds will have a validity of just 10 days rather than the usual period of 15 days.
How are electoral bonds work
Electoral bonds are a way of funding to eligible political parties while maintaining the anonymity of the fundraiser. The bonds were introduced in 2017 and got implemented in 2018, right before the Lok Sabha elections in 2019. The bank explains ‘eligible political party’ is who has registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) and has secured at least one percent votes in the last General Elections.
Eligibility
Electoral bonds are bearer instruments, meaning that the holder of the bond is the owner of the bond. Electoral bonds can be purchased by any Indian citizen or any entity incorporated or established in India.
To purchase electoral bonds, one must visit an authorized branch of the State Bank of India (SBI) during the designated sale period. The bonds are available in denominations of ₹1,000, ₹10,000, ₹1,00,000, ₹10,00,000, and ₹1,00,00,000.
Once purchased, electoral bonds can be donated to any registered political party that has secured not less than 1% of the votes polled in the last Lok Sabha or legislative assembly elections. The political party can then encash the bonds through a bank account with an authorized bank.
Are Jammu and Kashmir’s political parties eligible?
Yes, Jammu and Kashmir’s political parties are eligible to purchase and receive electoral bonds. However, they must meet the same eligibility criteria as political parties in other parts of India, which means that they must have secured not less than 1% of the votes polled in the last Lok Sabha or legislative assembly elections.
Can J&K’s buy these bonds from SBI Bank?
Yes, political parties in Jammu and Kashmir can purchase electoral bonds from SBI Bank. SBI branches in Srinagar and Jammu are authorized to sell electoral bonds.
Validity of electoral bonds
Electoral bonds are valid for one year from the date of issue. If a political party does not encash the bonds within one year, they will become invalid.
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