Electoral Bonds: SBI to Issue and Encash Electoral Bonds in Phase 29 under Government Authorization w.e.f. 06.11.2023 to 20.11.2023

The Government of India, in the XXIX Phase of the sale, has granted authorization to the State Bank of India (SBI) for the issuance and redemption of Electoral Bonds through its 29 authorized branches. This authorization is effective from November 6, 2023, to November 20, 2023, and is aimed at facilitating the Electoral Bond scheme, which plays a significant role in political funding and transparency.

Under this scheme, Electoral Bonds will have a validity period of 15 calendar days from the date of issuance. It’s crucial to note that any Electoral Bond deposited after the expiry of this validity period will not result in a payment to the intended payee Political Party. This provision ensures the timeliness and effectiveness of the contributions made through Electoral Bonds.

The process is designed to be swift and efficient. Electoral Bonds deposited by an eligible Political Party into its account will be credited on the same day, enhancing the transparency and accountability of financial transactions in the political arena.

The Government of India introduced the Electoral Bond Scheme in 2018 through a Gazette Notification (No. 20 dated 2nd January 2018). This scheme has seen amendments, as reflected in the Gazette Notification dated 7th November 2022, in an ongoing effort to refine and improve the electoral financing process.

According to the provisions of this scheme, Electoral Bonds can be purchased by individuals who are citizens of India or entities incorporated or established in India. Individuals have the flexibility to acquire Electoral Bonds either individually or jointly with other individuals. However, it’s essential to highlight that only Political Parties registered under Section 29A of the Representation of the People Act, 1951 and those who secured at least one percent of the votes polled in the last General Election to the House of the People or the Legislative Assembly of the State are eligible to receive Electoral Bonds.

Furthermore, the redemption of Electoral Bonds can only be conducted by eligible Political Parties through a bank account with the Authorized Bank, ensuring the traceability and legitimacy of financial transactions in the political sphere. This stringent process is implemented to maintain transparency and accountability in the handling of Electoral Bonds and political funding.