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Business News/ News / India/  Electoral Bonds open for sale: Check eligibility, validity, face value, and other details here
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Electoral Bonds open for sale: Check eligibility, validity, face value, and other details here

An electoral bond is a bearer banking instrument to be used for funding eligible political parties

Electoral Bonds to open for sale tomorrow: SBI is the only authorised bank to issue electoral bonds. (REUTERS)Premium
Electoral Bonds to open for sale tomorrow: SBI is the only authorised bank to issue electoral bonds. (REUTERS)

The 28th tranche of electoral bonds opened for sale for ten days starting October 4. "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," the finance ministry said in a statement on Friday.

What is an electoral bond?

An electoral bond is a bearer banking instrument to be used for funding eligible political parties. An eligible political party is the one registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) and secured not less than one per cent of the votes polled in the last General Election to the House of the People or the Legislative Assembly.

Who can purchase Electoral Bonds? 

The Electoral Bonds under this Scheme may be purchased by a Person, who is a citizen of India or incorporated or established in India.

The definition of “Person" includes-

(i) an Individual;

(ii) a Hindu Undivided Family;

(iii) a Company;

(iv) a Firm;

(v) an Association of Persons or a Body of Individuals, whether incorporated or not;

(vi) every Artificial Juridical Person, not falling within any of the preceding subclauses; and

(vii) any Agency, Office, or Branch owned or controlled by such person

Face Value of Electoral Bonds?

The Electoral Bonds shall be issued in the denomination of Rs1000, 10,000, 1,00,000, 10,00,000 and 1,00,00,000

Electoral Bonds validity

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.

From where can one buy electoral bonds?

SBI is the only authorised bank to issue electoral bonds. The authorised SBI branches include those in Bengaluru, Lucknow, Shimla, Dehradun, Kolkata, Guwahati, Chennai, Patna, New Delhi, Chandigarh, Srinagar, Gandhinagar, Bhopal, Raipur, and Mumbai.

‘28th tranche of electoral bonds opens on Oct 4, expected to benefit BJP: Ex-Union Minister’

Senior Congress leader P Chidambaram on Saturday described electoral bonds as “legalised bribery".

 

"The 28th tranche of the electoral bonds will open on October 4 and said, “It will be a golden harvest for the BJP. Going by the past records, 90 per cent of the so-called anonymous donations will go to the BJP. The crony capitalists will open their chequebooks to write out their 'tribute' to the lord and master in Delhi," " the former Union minister posted on X.

The decision comes ahead of assembly elections in Rajasthan, Madhya Pradesh, Chhattisgarh, Telangana and Mizoram.

-With agency inputs

 

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ABOUT THE AUTHOR
Sangeeta Ojha
A business media enthusiast. Writes on personal finance, business and banking.
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Updated: 05 Oct 2023, 06:31 AM IST
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