SBI will issue election bonds in 29 branches from July 1; Check details
The Ministry of Finance said on Thursday that the State Bank of India (SBI), in the 21st phase of the sale, will issue election bonds through its 29 authorized branches across India between July 1 and July 10. . Bonds are used to donate money to party policies. Here are the details on campaign bonds and who can buy them:
What are electoral bonds?
These bonds are used by individuals or entities to donate money to political parties. The bonds can be purchased from the 29 authorized branches of the government-owned State Bank of India (SBI) in multiples of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh and Rs 1 crore.
Bonds must be redeemed by the receiving political party within 15 days of the date of issue, failing which no payment is made to the party. The refunded amount is credited to the political party’s account on the same day the deposit is deposited in the bank. Election vouchers will be redeemed by an eligible political party only through a bank account with the authorized bank.
Simply put, anyone wishing to donate money to a political party must purchase the election bonds from any authorized branch of SBI to buy by paying digitally or by check, as cash is not permitted. The donor can then donate the bonds to the political party of their choice. Finally, the party can redeem the bonds within 15 days of the date of issue.
Who can buy election bonds, which political parties can accept them?
Election bonds can be purchased by a person who is an Indian citizen or an entity incorporated or established in India. A natural person can purchase election bonds either alone or jointly with other natural persons. The buyer would only be allowed to purchase election bonds by duly complying with all existing KYC standards and making payment from a bank account. It will not bear the beneficiary’s name.
The bonds are available for purchase for a period of 10 days each during the months of January, April, July and October. Now, Election Bonds can be purchased between July 1 and July 10.
Only political parties registered under Section 29A of the Representation of the People Act 1951 and which received at least one percent of the vote in the last Lok Sabha or State elections are eligible to receive the bonds elections.
When were these obligations introduced and why?
Voter Bonds were introduced with the 2017 Finance Bill to “clean up the political finance system in the country” and then the 2018 Voter Bond Program was notified.
In the February 1, 2017 Budget Speech, then Finance Minister Arun Jaitley said: “Even 70 years after independence, the country has not been able to develop a transparent financing of political parties which is vital for the system of free and fair elections. …Political parties continue to receive most of their funds through anonymous donations that are presented in cash. An effort must therefore be made to clean up the political finance system in India.
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