Home / News / India /  Sale of electoral bonds to begin from July 1-10, SBI to issue these bonds

The sale of electoral bonds will begin from July 1st for Indian citizens. These bonds will be available for purchase at authorised branches of the largest public sector bank, the State Bank of India (SBI). The sale will close on July 10.

An Indian citizen is eligible to buy Electoral Bonds, either singly or jointly with other individuals. 

Notably, only political parties registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) and which secured not less than 1% of the votes polled in the last General Election to the House of the People or the Legislative Assembly of the State, are eligible to receive the Electoral Bonds.

Electoral bonds are a bearer instrument in the nature of a Promissory Note and an interest free banking instrument.

These bonds will be encashed by an eligible political party only through a bank account with the Authorized Bank. 

The Electoral Bond deposited by an eligible Political Party in its account shall be credited on the same day.

SBI, in the 21st phase of sale, has been authorised to issue and encash Electoral Bonds through its 29 Authorized Branches with effect from July 1 to July 10.

These bonds can be purchased for any value in multiples of 1,000, 10,000, 1 lakh, 10 lakh, and 1 crore from the specified branches of SBI.

Also, these electoral bonds will be valid for fifteen calendar days from the date of issue and no payment shall be made to any payee Political Party if the Electoral Bond is deposited after the expiry of the validity period.

Notably, a purchase can only buy electoral bond(s) after fulfilling all the extant KYC norms and by making payment from a bank account. It will not carry the name of payee.

Generally, the bonds are available for purchase for a period of 10 days each in the months of January, April, July and October, as may be specified by the Central Government.

Electoral bonds scheme was announced by the government to cleanse the system of political funding in the country.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout