The sale of special papers called “electoral bonds” has started. The big State Bank of India (SBI) is allowed to give
and receive these bonds at its 29 special branches in state capitals from January 2 to January 11.
This news was shared by the Finance Ministry. Starting today, Tuesday, political groups can get these electoral bonds from SBI branches in all state capitals.
What is an electoral bond?
In January 2018, the Government of India introduced the electoral bond scheme, and it was updated in November 2022.
Electoral bonds were introduced with a financial bill in 2017. On January 29, 2018, the NDA government, led by Narendra Modi, announced the Electoral Bond Scheme 2018.
This new scheme was created to make the process of collecting funds for political parties’ elections more clear and free from corruption.
An electoral bond is like a promise note that anyone can buy from any State Bank of India branch.
It’s a kind of donation that individuals or companies can purchase and give to the political party they support.
These bonds can be bought digitally or using a check. They are like special bank notes that can be used later.
What are the rules?
According to the plan, any person who is a citizen of India or is established in India can buy electoral bonds. Individuals can buy these bonds alone or with others.
Electoral bonds will be valid for 15 days from when they are issued. If the bond is used after this time, no money will be given to any political party.
The political party can use the money from the electoral bond on the same day they put it in their account.
Only political parties registered under Section 29A of the Representation of the People Act, 1951, and those that got at least one percent of the votes in the last general or assembly election, can get electoral bonds.
The official statement says that eligible political parties can cash in these bonds only through a special bank account.
