The State Bank of India (SBI) is all set to open the 28th tranche of electoral bonds for sale from Tuesday. They will be open for sale for 10 days.
The finance ministry, in a recent statement, said "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 list enclosed) w.e.f. October 4-13."
The announcement comes ahead of assembly elections in Rajasthan, Madhya Pradesh, Chhattisgarh, Telangana and Mizoram.
SBI is the only authorised bank to issue electoral bonds. SBI branches in Bengaluru, Lucknow, Shimla, Dehradun, Kolkata, Guwahati, Chennai, Patna, New Delhi, Chandigarh, Srinagar, Gandhinagar, Bhopal, Raipur, and Mumbai are authorised to sell electoral bonds.
The finance ministry further said the electoral bonds will be valid for 15 calendar days from the date of issue and no payment will be made to any payee political party if the bond is deposited after the expiry of the validity period.
"The electoral bond deposited by an eligible political party in its account shall be credited on the same day," it added.
What are electoral bonds?
Electoral bonds refer to a financial tool that can be purchased by an individual, a company or firm, a Hindu Undivided Family, or an association of persons to make donations to a political party. They are similar bank notes that are payable to the bearer on demand and can be purchased from an authoried bank.
Electoral bonds have been pitched as an alternative to cash donations made to political parties as part of efforts to bring transparency to political funding.
A donor can donate the bonds to any political party of his/her/their choice.
Registered political parties that have secured not less than one per cent of the votes polled in the last Lok Sabha or legislative assembly elections are eligible to receive funding through electoral bonds.
Validity, face value
SBI will issue electoral bonds in the denomination of Rs1000, ₹10,000, ₹1,00,000, ₹10,00,000 and ₹1,00,00,000. They will be valid for 15 calendar days from the date of issue.
