SBI sold electoral bonds worth Rs 10,246 crore since inception

In an RTI reply, SBI said the majority of these bonds were of one crore while less than 10 per cent of subscriptions were of lower denominations -- ten lakh, one lakh, ten thousand and one thousand.

PTIUpdated: Thursday, November 17, 2022, 09:11 PM IST
article-image
SBI sold electoral bonds worth Rs 10,246 crore since inception | File/ Representative image

Electoral bonds worth Rs 10,246 crore have been sold by the State Bank of India (SBI) since the instrument was launched in March 2018.

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

Electroal bonds sold

In an RTI reply, SBI said the majority of these bonds were of one crore while less than 10 per cent of subscriptions were of lower denominations -- ten lakh, one lakh, ten thousand and one thousand.

About 93.5 per cent of total bonds sold were in the denomination of Rs 1 crore, according to an RTI filed by Chandra Shekhar Gaur.

Only 0.25 per cent in value terms were from one lakh, ten thousand and one thousand denominations.

SBI has been authorised to issue and encash electoral bonds through 29 authorised branches. The authorised SBI branches include those in Lucknow, Shimla, Dehradun, Kolkata, Guwahati, Chennai, Patna, New Delhi, Chandigarh, Srinagar, Gandhinagar, Bhopal, Raipur, and Mumbai.

The sale of the first batch of electoral bonds started on March 1-10, 2018.

What is an electoral bond?

Electoral Bond (EB) is a bearer instrument in the nature of a Promissory Note and an interest-free banking instrument.

The government, on January 2, 2018, notified the Electoral Bond Scheme, 2018 to establish and cleanse the system of political funding in the country.

All payments for the issuance of the bond are accepted only in Indian rupees, through demand draft or cheque through Electronic Clearing System or direct debit to the buyer's account.

Electoral bonds validity

An electoral bond is valid for 15 days from the date of issuance. No payment can be made to any political party if the bond is deposited after the expiry of the validity period.

Who can purchase electroal bonds, and which parties can receive the funding?

As per provisions of the scheme, electoral bonds may be purchased by a person, who is a citizen of India or entities incorporated or established in India.

The purchaser is allowed to buy an electoral bond(s) only on due fulfilment of all the extant instructions regarding KYC norms issued by the Reserve Bank of India (RBI) and by making payment from a bank account.

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.

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

RECENT STORIES

RBI: Bank credit grows nearly 17% for fortnight ended Nov 18

RBI: Bank credit grows nearly 17% for fortnight ended Nov 18

Tech layoffs: US-based Fidelity fires 400 Indian employees in Pune as part of global job cuts

Tech layoffs: US-based Fidelity fires 400 Indian employees in Pune as part of global job cuts

China’s zero COVID policy to infect these Indian sectors|Teji Mandi Explains

China’s zero COVID policy to infect these Indian sectors|Teji Mandi Explains

HCL to host Investor Day in New York on Dec 8

HCL to host Investor Day in New York on Dec 8

Europe closer to imposing $60 per barrel price cap on Russian oil

Europe closer to imposing $60 per barrel price cap on Russian oil