Electoral bonds will be up for sale from 19 October, says finance ministry1 min read . Updated: 16 Oct 2020, 08:53 PM IST
- Electoral bonds can be purchased by a person who is a citizen of India or incorporated or established in India
- SBI is the only authorised bank to issue such bonds
The finance ministry on Friday said the 14th tranche of electoral bonds sale will take place from 19 October. Electoral bonds have been pitched as an alternative to cash donations made to political parties as part of efforts to bring transparency in political funding. One can purchase electoral bonds from select State Bank of India (SBI) branches across the country till 28 October.
"The State Bank of India, in the XIV Phase of sale, has been authorised to issue and encash Electoral Bonds through its 29 Authorized Branches ( as per list enclosed) w.e.f. 19.10.2020 to 28.10.2020," the finance ministry said in a notification.
The 29 specified SBI branches are in cities such as New Delhi, Chandigarh, Shimla, Srinagar, Dehradun, Gandhinagar, Bhopal, Raipur, Mumbai, Patna, and Lucknow.
Electoral bonds can be purchased by a person who is a citizen of India or incorporated or established in India. SBI is the only authorised bank to issue such bonds. One can also buy electoral bonds jointly with other individuals.
"Only the Political Parties registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) and which 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 of the State, shall be eligible to receive the Electoral Bonds," the notification stated. The electoral bonds shall be encashed by an eligible political party only through a Bank account with the authorised bank, ministry said.
An electoral bond will be valid for 15 days from the date of issue. No payment will be made to any payee political party if the bond is deposited after expiry of the validity period. The bond deposited by any eligible political party into its account will be credited on the same day.
According to Election Commission of India, "No political functionary shall make any reference in this regard during any public speech or communication to the press or public in the constituencies going for poll." The relevant provisions of Model Code of Conduct issued by the Election Commission shall be strictly followed, it stated.