New Delhi – In preparation for the upcoming assembly elections in five states, the Indian government has announced the approval of the 29th tranche of electoral bonds. These bonds will be available for sale starting from November 6. The decision comes amidst the ongoing campaigning for the assembly elections in Rajasthan, Madhya Pradesh, Chhattisgarh, Telangana, and Mizoram. The elections in these states will take place from November 7 to November 30, with the counting of votes scheduled for December 3.
Electoral bonds have been introduced as an alternative to cash donations made to political parties, aiming to increase transparency in political funding. The Government of India has authorized the State Bank of India (SBI) to issue and encash these electoral bonds through its 29 authorized branches during the XXIX Phase of sale, running from November 6 to November 20, 2023, according to a statement by the finance ministry.
The first batch of electoral bonds went on sale in March 2018. Only eligible political parties can encash these bonds, and they must do so through a bank account with the authorized bank. SBI is currently the only authorized bank to issue electoral bonds. The authorized SBI branches include locations in Bengaluru, Lucknow, Shimla, Dehradun, Kolkata, Guwahati, Chennai, Patna, New Delhi, Chandigarh, Srinagar, Gandhinagar, Bhopal, Raipur, and Mumbai.
According to the finance ministry, electoral bonds will be valid for 15 calendar days from the date of issue. If a bond is deposited after the expiry of the validity period, no payment will be made to the political party. On the other hand, if an eligible political party deposits an electoral bond in its account, it will be credited on the same day.
Indian citizens and entities incorporated or established within the country can purchase electoral bonds. Registered political parties that received at least 1% of the votes in the last Lok Sabha or legislative assembly elections are eligible to receive funding through these bonds, the ministry added. These measures aim to enhance transparency and regulate political funding during the election period.
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