Political parties use funding from their supporters, who could be individuals, unions or organisations for campaigns or routine activities.
In 2018, the Narendra Modi-led NDA government introduced the Electoral Bond Scheme as an alternative to cash donations made to political parties, to bring transparency in political funding.
- Electoral Bond is a bearer Banking Instrument.
- These bonds can be purchased by a person who is a citizen of India or incorporated or established in India.
- Individuals can buy Electoral Bonds, either singly or jointly with other individuals.
- These are issued in the denomination of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh and Rs 1 crore.
- 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.
- The Electoral Bonds shall be encashed by an eligible Political Party only through a Bank account with the Authorized Bank.
- Electoral Bonds are valid for 15 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.
- No coupon rate (interest rate) offered on these bonds.
- Bonds can be purchased in January, April, July and October months of each year when the tranche is open for purchase for a period of 10 days.
- Political parties will also have to inform election commission on the amount of money they received from Electoral bonds.
How to purchase Electoral Bonds?
The State Bank of India (SBI) has been authorised to issue and encash Electoral Bonds through its 29 Authorized Branches.
- In addition to Application Form and Pay-in-Slip, the Applicant should submit a copy each of Citizenship Proof and KYC documents, along with originals at the SBI branch.
- Every application will be treated as a fresh request for Electoral Bonds purchase and every time fresh KYC documents will be given, which means that the same applicant can purchase electoral bonds several times.
- Payment for Electoral Bond can be made through Cheque, DD, NEFT/RTGS or Direct Debit to the Applicant Account. However, Applicant and Remitter must be the same Person/Entity.
- If the purchaser does not hold an account with SBI, he/she can purchase Electoral Bond through
- a. Cheque / DD drawn in favour of the Authorized SBI Branch and payable at the local Clearing House.
- b. Remitting funds through NEFT/RTGS after generating Virtual Account Number on the pre-login screen of Online SBI site (www.onlinesbi.com).
- In case of cheques/bank DD, Cheque should be drawn in favour of "State Bank of India A/c Electoral Bond Scheme 2018" and clear funds must be realized by Designated Branch of SBI within the sale period window. Clearing cheque should be deposited in Designated SBI Branches at least 3 working days before the closure of Electoral Bond sale period.
The 29 authorised SBI branches for electoral bonds include:
Branch code: 00691
Address: New Delhi Main Branch, 11, Parliament Street, New Delhi - 110001
2. Haryana, Punjab and Chandigarh
Branch code: 00628
Address: Chandigarh Main Branch, SCO 43-48, Banking Square, Sector-17B, Chandigarh, State: Chandigarh- 160017
3. Himachal Pradesh
Branch code: 00718
Address: Shimla Main Branch, Near Kali Bari Temple, The Mall, Shimla, Himachal Pradesh. Pin: 171003
4. Jammu and Kashmir
Branch code: 02295
Address: Badami Bagh (Srinagar) Branch, Badami Bagh Cantonment, Srinagar, Kashmir. Pin: 190001
Branch code: 00630
Address: Dehra Dun Main Branch, 4, Convent Road, Dehradun, Uttarakhand. Pin: 248001
6. Gujarat, Dadar & Nagar Haveli and Daman & Diu
Branch code: 01355
Address: Gandhinagar Branch, I Floor, Zonal Office, Sector 10 B Gandhinagar, Gujarat. Pin:382010.
7. Madhya Pradesh
Branch code: 01308
Address: Bhopal Main Branch, T.T.Nagar, Bhopal-462003, Bhopal, Madhya Pradesh. Pin : 462003
Branch code: 00461
Address: Raipur Main Branch, P.B.N0.29/61, JaistambhChowk, Raipur, Chhatisgarh. Pin: 492001
Branch code: 00656
Address: Jaipur Main Branch, P.B.No.72, Sanganeri Gate, Jaipur, Rajasthan. Pin: 302003
Branch code: 00300
Address: Mumbai Main Branch, Mumbai SamacharMarg, Horniman Circle, Fort, Mumbai, Maharashtra. Pin: 400001
11. Goa, Lakshadweep
Branch code: 00509
Address: Panaji Branch, Opp: Hotel Mandovi, Dayanand, Panaji, Goa. Pin: 403001
12. Uttar Pradesh
Branch code: 00125
Address: Lucknow Main Branch, TarawaliKothi, Motimahal Marg, Hazratganj, Lucknow, Uttar Pradesh. Pin: 226001
Branch code: 00041
Address: Bhubaneswar Main Branch, P.B.No.14, Bhubaneswar, Orissa. Pin: 751001
14. West Bengal and Andaman & Nicobar
Branch code: 00001
Address: Kolkata Main Branch, SamriddhiBhawan, 1, Strand Road, Kolkata, West Bengal. Pin: 700001
Branch code: 00152
Address: Patna Main Branch, West Gandhi Maidhan, Patna, Bihar. Pin: 800001
Branch code: 00167
Address: Ranchi Branch, Court Compound, Ranchi, Jharkhand. Pin: 834001
Branch code: 00232
Address: Gangtok Branch, M G Marg, Gangtok, Sikkim Pin: 737101
18. Arunachal Pradesh
Branch code: 06091
Address: ltanagar Branch, TI Marg, VIP Road Bank Tinali, Papumpare District, ltanagar, Arunachal Pradesh. Pin: 791111
Branch code: 00214
Address: Kohima Branch, Near deputy commissioner's office, Kohima, Nagaland, Pin: 797001
Branch code: 00078
Address: Guwahati Branch, Pan Bazar, MG Road, Kamrup, Guwahati. Pin: 781001
Branch code: 00092
Address: lmphal Branch, M G Avenue, lmphal west, Manipur, Pin: 795001
Branch code: 00181
Address: Shillong Branch, MG road, Near General PO, Khasi Hills (E), Shillong, Meghalaya. Pin: 793001
Branch code: 01539
Address: Aizawl Branch, Solomns cave, Mizoram, Pin: 796001
Branch code: 00002
Address: Agartala Branch, Hari Ganga Basak Road, Agartala, District: Tripura (W), Tripura Pin: 799001
25. Andhra Pradesh
Branch code: 00952
Address: Visakhapatnam Branch, Rednam Gardens, Jail Road, Junction, Visakhapatnam, Andhra Pradesh. Pin: 530002
Branch code: 00847
Address: Hyderabad Main Branch, Bank Street, Koti, Hyderabad, Telangana. Pin: 500095
27. Tamil Nadu and Puducherry
Branch code: 00800
Address: Chennai Main Branch, 336/166, Thambuchetty Street, Parrys, Chennai, Tamil Nadu Pin: 600001
Branch code: 00813
Address: Bengaluru Main Branch, Post Bag No.5310, St. Marks Road, Bangalore, Karnataka Pin: 560001
Branch code: 00941
Address: Thiruvananthapuram Branch, P.B.No.14, M.G.Road, Thiruvananthapuram, Kerala. Pin: 695001