Central Idea
- The government has announced a fresh tranche of electoral bond sales for a 10-day period starting through the authorised branches of State Bank of India across the country.
About the Electoral Bond Scheme
| Definition | Banking instruments for political party donations with donor anonymity. |
| Launch | 2017-18 Union Budget |
| Purchase Method | Available to Indian citizens and Indian-incorporated companies from select State Bank of India branches. Can be bought digitally or via cheque. |
| Donation Process | Purchasers can donate these bonds to eligible political parties of their choice. |
| Denominations | Available in multiples of ₹1,000, ₹10,000, ₹10 lakh, and ₹1 crore. |
| KYC Requirements | Purchasers must fulfill existing KYC norms and pay from a bank account. |
| Lifespan of Bonds | Bonds have a 15-day life to prevent them from becoming a parallel currency. |
| Identity Disclosure | Donors contributing less than ₹20,000 need not provide identity details like PAN. |
| Redemption | Electoral Bonds can be encashed only by eligible political parties through an Authorized Bank. |
| Eligibility of Parties | Only parties meeting specific criteria, including securing at least 1% of votes in the last General Election, can receive Electoral Bonds. |
| Restrictions Lifted | Foreign and Indian companies can now donate without disclosing contributions as per the Companies Act. |
| Objective | To enhance transparency in political funding and ensure funds collected by political parties are accounted or clean money. |
