The Electoral Bond Scheme 2018 has stirred a debate in India after Supreme Court of India’s intervention and public disclosure of donations received through it.

Let’s explore what is electoral bond, who introduce it, Eligibility Criteria for Political Parties, Authorized Issuer and Redemptions and Validity Period and Redemption Process of electoral bond.

Who introduced electoral bond scheme?

The Electoral Bond Scheme 2018 introduced by the Government of India under the Leadership of Prime Minister Narendra Modi which has revolutionized political funding in the country. This scheme has garnered significant attention since its inception by promoting transparency and accountability in political donations.

What is Electoral Bond?

Electoral Bonds are financial instruments that allow individuals and organizations to donate funds to political parties in India. These bonds can be purchased by citizens of India or entities incorporated in India. One notable feature of Electoral Bonds is that this financial instrument can be bought either singly or jointly with other individuals by providing flexibility to donors.

Eligibility Criteria for Political Parties:

Political parties registered under Section 29A of the Representation of the People Act, 1951 and have 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.

Key Facts about Electoral Bond Scheme:

• The Government has introduced Electoral Bonds to reform political funding.
• Electoral Bonds are bearer instruments available in various denominations, from 1000 to 1,00,00,000.
• Purchase requires adherence to KYC norms and payment from a bank account, with a 15-day validity for donations.
• These bonds are purchasable for limited periods in specified months, with an extended period during general elections.
• Only political parties meeting certain criteria can encash these bonds through designated bank accounts.
• Electoral Bonds aim to bring transparency to political funding while ensuring compliance with legal requirements.

Authorized Issuer and Redemption:

The State Bank of India (SBI) has been authorized to issue and encash Electoral Bonds through its 29 Authorized Branches. These branches serve as the primary points for both purchasing and redeeming Electoral Bonds. The following branches of State Bank of India has been authorised to issue and encash Electoral Bonds:

Sl. No.	State/UT	Name of the Branch & Address	Branch Code No.
1	Delhi	Delhi Main Branch 11, Parliament Street, New Delhi – 110001	691
2	Haryana, Punjab and Chandigarh	Chandigarh Main Branch SCO 43-48, Banking Square, Sector-17B, Chandigarh, Distt: Chandigarh State: Chandigarh, Pin : 160017	628
3	Himachal Pradesh	Shimla Main Branch Near Kali Bari Temple, The Mall, Shimla, District : Shimla State: Himachal Pradesh, Pin : 171003	718
4	Jammu and Kashmir	Badami Bagh (Srinagar) Branch Badami Bagh Cantonment, Srinagar, Kashmir Dist : Badgam, State: Jammu & Kashmir Pin : 190001	2295
5	Uttarakhand	Dehra Dun Main Branch 4, Convent Road, Dehradun Uttarakhand, District : Dehradun State: Uttarakhand Pin : 248001	630
6	Gujarat, Dadar & Nagar Haveli and Daman & Diu	Gandhinagar Branch, I Floor, Zonal Office Sector 10 B Gandhinagar Distt: Gandhinagar, State : Gujarat Pin:382010.	1355
7	Madhya Pradesh	Bhopal Main Branch T.T.Nagar,Bhopal-462003, Bhopal, Madhya Pradesh, District : Bhopal, State: Madhya Pradesh, Pin : 462003	1308
8	Chhattisgarh	Raipur Main Branch P.B.NO.29/61, Jaistambh Chowk, Raipur, District : Raipur State : Chhatisgarh Pin: 492001	461
9	Rajasthan	Jaipur Main Branch P.B.No.72, Sanganeri Gate Jaipur, Rajasthan District: Jaipur, State: Rajasthan. Pin : 302003	656
10	Maharashtra	Mumbai Main Branch Mumbai Samachar Marg Horniman Circle, Fort, Mumbai, Maharashtra Pin: 400001	300
11	Goa, Lakshadweep	Panaji Branch Opp : Hotel Mandovi, Dayanand, Dayanand Bandodkar Marg, Panaji, Goa. District : North Goa, State : Goa, Pin: 403001	509
12	Uttar Pradesh	Lucknow Main Branch Tarawali Kothi, Motimahal Marg, Hazratganj, Lucknow, Uttar Pradesh District :Lucknow, State: Uttar Pradesh Pin : 226001	125
13	Odisha	Bhubaneswar Main Branch P.B.NO.14, Bhubaneswar Bhubaneswar District : Khurda State: Odisha, Pin : 751001	41
14	West Bengal and Andaman & Nicobar	Kolkata Main Branch Samriddhi Bhawan 1, Strand Road, Kolkata, West Bengal, District :Kolkata. State: West Bengal. 3 Pin : 700001	1
15	Bihar	Patna Main Branch West Gandhi Maidhan, Patna, Bihar. Pin: 800001	152
16	Jharkhand	Ranchi Branch Court Compound, Jharkhand, District : Ranchi, State: Jharkhand, Pin : 834001	167
17	Sikkim	Gangtok Branch M G Marg, Gangtok SIKKIM Dist: East Sikkim State : Sikkim Pin : 737101	232
18	Arunachal Pradesh	Itanagar Branch TT Marg,VIP Road Bank Tinali, Itanagar, Arunachal Pradesh District : Papumpare State : Arunachal Pradesh Pin : 791111	6091
19	Nagaland	Kohima Branch Near deputy commissioner’s office Kohima Nagaland Pin: 797001	214
20	Assam	Guwahati Branch Pan Bazar, MG Road, Kamrup, Guwahati, Pin: 781001	78
21	Manipur	Imphal Branch M G Avenue, Imphal west Manipur Pin: 795001	92
22	Meghalaya	Shilong Branch MG Road, Near General PO Shillong, District: Khasi Hills (E), Meghalaya, Pin: 793001	181
23	Mizoram	Aizawl Branch Solomns cave District: Aizawl, Mizoram Pin: 796001	1539
24	Tripura	Agartala Branch Hari Ganga Basak road, Agartala District: Tripura (W), Tripura Pin: 799001	2
25	Andhra Pradesh	Visakhapatnam Branch Rednam Gardens, Jail Road, Junction, Opp. Pages/Vodaphone Off, Visakhapatnam, District: Visakhapatnam State : Andhra Pradesh Pin : 530002	952
26	Telangana	Hyderabad Main Branch Bank Street, Koti, Hyderabad. District : Hyderabad State: Telangana Pin : 500095	847
27	Tamil Nadu and Puducherry	Chennai Main Branch 336/166, Thambuchetty Street, Parrys, Chennai. State: Tamil Nadu Pin : 600001	800
28	Karnataka	Bengaluru Main Branch Post Bag No.5310, St. Marks Road, Bangalore, District :Bangalore Urban, State: Karnataka, Pin : 560001	813
29	Kerala	Thiruvananthapuram Branch P.B.No.14, M.G.Road, Thiruvananthapuram, District : Thiruvananthapuram, State: Kerala, Pin: 695001	941

Validity Period and Redemption Process:

Electoral Bonds have a validity period of fifteen calendar days from the date of issue. It’s crucial to note that no payment can be made to any political party if the Electoral Bond is deposited after the expiry of the validity period. Upon deposit, the Electoral Bond is credited to the recipient political party’s account on the same day.

Also Read | Karvy Stock Broking Case: Latest News and Updates on Karvy Case

Important Amendment:

A recent amendment to the Electoral Bond Scheme which was as notified on May 1, 2019, has revised the schedule of issuance and redemption of Electoral Bonds. The next phase of Electoral Bonds sale has been restricted to May 6, 2019 to May 10, 2019 instead of the previously scheduled period of May 6, 2019 to May 15, 2019.

The Electoral Bond Scheme 2018 represents a significant step towards enhancing transparency and accountability in political funding. It aims to foster a healthier democratic process by By providing a structured mechanism for donations to political parties.

source: PIB

Follow NEWSX PLUS for global insights and Latest News Updates and stay in the loop through our X (Previously Twitter) and WhatsApp channel.