State Bank of India Authorized to Issue Electoral Bonds in Latest Phase

In a recent development, the Ministry of Finance has granted authorization to the State Bank of India (SBI) for the issuance and encashment of electoral bonds through its 29 authorized branches. This move comes as part of the XXX Phase of the electoral bond sale, which is set to take place from January 2 to January 11.

According to the official statement, electoral bonds issued during this period will be valid for fifteen calendar days. It is crucial to note that no payments will be made to any political party if the electoral bond is deposited after the expirabantion of this validity period.

The statement further explains that electoral bonds deposited by eligible political parties will be credited on the same day. The government, in accordance with the Electoral Bond Scheme 2018, has emphasized that these bonds play a significant role in political funding.

Under the scheme, electoral bonds can be purchased by individuals who are citizens of India or entities incorporated or established in India. Individuals, both singly or jointly with others, can buy electoral bonds. However, only political parties registered under Section 29A of the Representation of the People Act, 1951, and securing at least one percent of the votes in the last general election, are eligible to receive these bonds.

Moreover, electoral bonds can only be encashed by eligible political parties through a bank account with the authorized bank. This initiative aims to streamline the process of political funding and enhance transparency in the electoral system.