Amid the ongoing assembly elections in Tamil Nadu, West Bengal, Kerala, Assam, and Puducherry, the Finance Ministry informed on March 30, 2021, that the issuance of the 16th tranche of electoral bonds will be open for sale from April 1 to April 10.
According to the press release by the Finance Ministry, the electoral bonds for the elections can be purchased by an individual who is a citizen of India or established or incorporated in India.
The electoral bonds will be encashed only by an eligible political party. It can be done only through a bank account with an authorized bank.
What are the electoral bonds?
| The electoral bonds have been pitched by the government as an alternative to the cash donations that are made to the political parties. The bonds are part of efforts to bring transparency in the political funding. |
Which bank is authorized to issue the bonds?
The Ministry of Finance has informed that the State Bank of India, in the XVI Phase of Sale, has been given the authorization to issue and encash the electoral bonds through its 29 authorized branches wef from April 1 to April 10, 2021.
Which political parties will be eligible to receive electoral bonds? |
| The political parties that are registered under Section 29A of the Representation of the People Act, 1951 will be eligible to receive the electoral bonds. The eligible parties must have secured not less than one percent of the votes polled in the last General Election to the Legislative Assembly of the State or House of the People. |
For how long the electoral bonds will be valid?
The Ministry of Finance has informed that the electoral bonds will remain valid for the fifteen calendar days from the date of issue. It must be noted that no payment will be made to any payee political party if the electoral bond has been deposited after the validity period is expired.
The electoral bond which will be deposited by an eligible political party in its account will be credited on the same day.
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