Electoral bonds 2023: Sale of 27th tranche begins today; check details

Government has approved the issuance of the 27th tranche of electoral bonds to be open for sale from today, July 3. The approval was given on June 30. State Bank of India has been authorised to issue and encash electoral bonds through 29 authorised branches across the country. 

The sale will commence on July 3 and continue till July 12, as per a statement by the finance ministry. 

SBI, the only authorised bank to issue electoral bonds will commence the sale through its  authorised branches in Bengaluru, Lucknow, Shimla, Dehradun, Kolkata, Guwahati, Chennai, Patna, New Delhi, Chandigarh, Srinagar, Gandhinagar, Bhopal, Raipur and Mumbai.

In Delhi, the main branch of SBI in Parliament Street will conduct the sale, while in Mumbai the main branch in Samachar Marg, Horniman Circle will conduct the sale. The main branch in Strand Road in Kolkata and the main branch in St Marks Road in Bengaluru will conduct the sale. 

WHAT ARE ELECTORAL BONDS?

Electoral bonds are like promissory notes that can be bought from a bank – in this case from the SBI – and can be donated to any eligible political parties of one’s choosing. The government notified the scheme in 2018. 

Electoral bonds are issued for any value in the multiples of Rs 1,000, Rs 10,000, Rs 1,00,000 and Rs 1,00,00,000 from specified branches. Purchasers can buy electoral bonds only on fulfilment of all the KYC norms and by making a payment from a bank account. The name of the payee would not be included. 

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These bonds have a life of only 15 days, and are available for purchase for a period of 10 days each in January, April, July and October as specified by the central government. 

The issuance of the Electoral Bonds Scheme was approved by the government in order to “cleanse the system of political funding in the country”, as per the Ministry of Finance. 

The July 30 approval came ahead of the assembly elections in Rajasthan, Madhya Pradesh, Chhattisgarh, Telangana and Mizoram, where poll dates are likely to be announced in a couple of months.

WHO CAN BUY ELECTORAL BONDS?

Electoral bonds can be purchased by Indian citizens or entities incorporated or established in the country. An individual can buy electoral bonds, either singly or jointly with other individuals.

Registered political parties that have secured not less than 1 per cent of the votes polled in the last Lok Sabha or legislative assembly election are eligible to receive funding through electoral bonds.

Electoral bonds can be encashed by an eligible political party only through a bank account with the authorised bank.

No payment shall be made to any payee political party if the electoral bond is deposited after expiry of the validity period. Electoral bonds deposited by an eligible political party in its account shall be credited on the same day.

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