What are electoral bonds and who can purchase it? 29 SBI branches to issue electoral bonds from today

New Delhi: State Bank of India (SBI) will issue and encash electoral bonds through its 29 authorised branches from November 9 to November 15. The government has approved issuance of 23rd tranche of electoral bonds that will open for sale today. The Finance Ministry has said that the electoral bonds shall be valid for 15 calendar days from the date of issue and no payment shall be made to any payee political party if the electoral bond is deposited after the expiry of the validity period.

The electoral bond deposited by an eligible political party in its account shall be credited on the same day.

What are Electoral bonds?

Electoral bonds have been pitched as an alternative to cash donations made to political parties as part of efforts to bring transparency in political funding. 

Who can purchase Electoral bonds?

Electoral bonds can be purchased by Indian citizens or entities incorporated or established in the country.

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.

The government had notified the Electoral Bond Scheme in 2018. Sale of the first batch of electoral bonds happened from March 1-10, 2018.