Electoral Bond: The concept of ‘Electoral Bonds’ was introduced back in the Finance Bill of 2017 as a revolutionary method of funding for political parties in India. These were interest-free-bearing instruments that could be purchased by interested donors from the State Bank of India (SBI) in fixed denominations and transferred to their favorite political parties.
The popular ‘Electoral Bond Scheme’ has made headlines several times due to the concept of anonymity claimed to be misused. As the SBI discloses data on the now-scraped electoral bond , candidates preparing for UPSC 2024 must understand this unique election funding system, which has been struck down by the Supreme Court.Everything About Electoral Bond | |
Particular | Description |
History | Introduced in 2017 and Implemented in 2018 |
Purpose | Anonymous donations to registered political parties. |
Nature | Interest-free and Payable to the bearer on demand |
Issuing Authority | State Bank of India (SBI) |
Denominations | Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 crore. |
Validity | 15 calendar days (from the issue date). |
Duration to Buy | 10 days each quarter of the financial year (January, April, July, and October) Additional 30 days in general election years. |
Buyer's Eligibility | Indian citizens, entities established in India (Either jointly or individually). |
Electoral Bond Eligibility | Political parties registered under Section 29A of the RoPA 1951 and secured not less than 1% of the votes polled in the last general election. |
Purchase Method | Digitally or Cheques. |
Encashment | Only through the political party’s authorized bank account. |