Electoral Bond Scheme
Consider the following regarding Electoral Bond Scheme
1.State Bank of India has been authorised to issue and encash Electoral Bonds.
2.It is as an alternative to cash donations.
3.Electoral Bonds may be purchased by a person who is a citizen of India or a foreigner.
Which of the following statement is/are correct?
1.1 and 2 only
2.2 and 3 only
3.1 and 3 only
4.1, 2 and 3
- State Bank of India (SBI), in the XIII Phase of sale, has been authorised to issue and encash Electoral Bonds through its 29 Authorized Branches.
- 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.
- As per provisions of the Scheme, Electoral Bonds may be purchased by a person who is a citizen of India or incorporated or established in India.
- Only the Political Parties registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) and which secured not less than one per cent of the votes polled in the last General Election to the House of the People or the Legislative Assembly of the State, shall be eligible to receive the Electoral Bonds. T
- The Electoral Bonds shall be encashed by an eligible Political Party only through a Bank account with the Authorized Bank.
- These bonds will be an interest-free debt instrument, resembling promissory notes and can be purchased in the multiples of Rs 1,000, Rs 10,000, Rs 100,000, Rs 1 million, and Rs 10 million. The bonds can be purchased “either singly or jointly with other individuals.”
- It may be noted that Electoral Bonds shall be valid for fifteen 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 expiry of the validity period. The Electoral Bond deposited by an eligible Political Party in its account shall be credited on the same day.
- The notification also makes it clear that an application to purchase the electoral bonds, which can also be made online, will be rejected if the know your customer (KYC) documents – voter ID, passport or Aadhaar – is not submitted by the purchaser. Although KYC documents are mandatory, the bonds will not carry the name of the person buying it.