SBI to Open Sale of Electoral Bonds for 10 Days

The State Bank of India (SBI) will open the 28th tranche of electoral bonds for sale from October 4 to 13, 2023. The bonds will be available at 29 authorized SBI branches across India.

Electoral bonds are a financial instrument that can be purchased by individuals, companies, or associations to make donations to political parties. They are similar to bank notes and can be purchased from authorized banks.

Electoral bonds are valid for 15 calendar days from the date of issue. Political parties must deposit the bonds into their bank accounts within this period to redeem them.

Eligibility:

• Individuals, companies, associations, and Hindu Undivided Families are eligible to purchase electoral bonds.
• Political parties that have secured not less than 1% of the votes polled in the last Lok Sabha or legislative assembly elections are eligible to receive funding through electoral bonds.

How to purchase electoral bonds:

• To purchase electoral bonds, donors must visit one of the 29 authorized SBI branches.
• Donors must provide their KYC details and make payment through cash, cheque, or demand draft.
• Donors will be issued electoral bonds in denominations of Rs. 1000, Rs. 10,000, Rs. 1,00,000, Rs. 10,00,000, and Rs. 1,00,00,000.

How to donate electoral bonds to political parties:

• To donate electoral bonds to a political party, donors must deposit the bonds into the party’s bank account within 15 days of issue.
• Donors must also provide the party with a declaration form stating their name and address, the denomination of the bonds, and the date of purchase.

Benefits of electoral bonds:

• Electoral bonds are pitched as an alternative to cash donations made to political parties as part of efforts to bring transparency to political funding.
• Electoral bonds are anonymous, which means that donors’ identities are not disclosed to political parties.
• Electoral bonds can be used to make donations to any political party of the donor’s choice.

Criticism of electoral bonds:

• Critics argue that electoral bonds are a way for corporations and wealthy individuals to influence elections without being held accountable.
• Critics also argue that electoral bonds make it difficult to track the source of political funding, which can lead to corruption.

Overall, the sale of electoral bonds is a controversial topic in India. Supporters argue that the bonds promote transparency in political funding, while critics argue that they are a way for corporations and wealthy individuals to influence elections without being held accountable.