Political parties garner Rs 1,045-crore through electoral bonds so farhttps://indianexpress.com/article/business/political-parties-garner-rs-1045-crore-through-electoral-bonds-so-far-5499628/

Political parties garner Rs 1,045-crore through electoral bonds so far

Electoral bonds, which is issued for a certain value denominations by the specified branches of the State Bank of India (SBI), has a tenure of 15 days.

electoral bonds, donations, political donations, political fundings in India, arun jaitley, finance minister, electoral donors, india news
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.(Illustration by Manali Ghosh)

Political parties have received Rs 1,045.53 crore so far by encashing electoral bonds during the total six tranches of such bonds released by the government. Electoral bonds worth of Rs 1,056.73 crore were purchased by citizens or entities till the completion of 6th phase of issuance of electoral bonds in November 2018, Minister of State for Finance P Radhakrishnan said in a written reply to the Rajya Sabha.

“So far six tranches of electoral bonds have been released by the Government as per the terms & conditions of the Notification dated 2.1.2018. An aggregated amount of Rs 1,056.73 crore was mobilised through sale of electoral bonds in six tranches. Out of the collected amount, a sum of Rs 1,045.53 crore was encashed by political parties,” he said.

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

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.

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Electoral bonds, which is issued for a certain value denominations by the specified branches of the State Bank of India (SBI), has a tenure of 15 days. It does not carry the name of payee or the donor.

These bonds can be used for making donation only to the political parties registered under Section 29A of the Representation of the Peoples Act, 1951 and which have secured not less than one per cent of the votes polled in the last general election to the House of the People or a Legislative Assembly.

The bonds under the scheme will be available for purchase for a period of 10 days, each in the months of January, April, July and October, as may be specified by the central government, Radhakrishnan said.

An additional period of 30 days will be specified by the central government in the year of the General election, he added.

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