Electoral bonds

Electoral bonds

Part of: Prelims and GS-II Polity 

Context: According to a Right to Information reply Electoral bonds worth Rs. 1,213 crore were sold by the State Bank of India (SBI) in January, with most of them (Rs. 784.84 crore) being encashed in the New Delhi branch, pointing towards national parties.

• The amount of bonds sold this time had been the highest before any Assembly poll since the scheme began in 2018.

About Electoral Bonds Scheme

• Electoral Bond is a financial instrument for making donations to political parties.
• The bonds are issued in multiples of Rs. 1,000, Rs. 10,000, Rs. 1 lakh, Rs. 10 lakh and Rs. 1 crore without any maximum limit.
• State Bank of India is authorised to issue and encash these bonds, which are valid for fifteen days from the date of issuance.
• These bonds are redeemable in the designated account of a registered political party.
• The bonds are available for purchase by any person (who is a citizen of India or incorporated or established in India) for a period of ten days each in the months of January, April, July and October as may be specified by the Central Government.
• A person being an individual can buy bonds, either singly or jointly with other individuals. Donor’s name is not mentioned on the bond.

News Source: TH