SBIs Electoral Bond Issuance Reaches Rs 16,518 Crore: Promoting Clean Political Funding

In a significant development, the State Bank of India (SBI) has issued Electoral Bonds worth a staggering Rs 16,518 crore in 30 tranches since the inception of the scheme in 2018. This revelation came to light during a recent session of the Parliament, where the Minister of State for Finance, Pankaj Chaudhary, provided a written reply in the Lok Sabha.

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Objective of Electoral Bond Scheme

The Electoral Bond Scheme was introduced with the primary objective of ensuring that clean tax-paid money enters the political funding system through proper banking channels. By utilizing this mechanism, political parties can receive funds in a transparent and accountable manner, promoting greater financial integrity in the political landscape.

No GST or Taxes on Electoral Bonds

Notably, the purchase of Electoral Bonds is exempt from Goods and Services Tax (GST) or any other taxes or cess. This exemption aims to encourage individuals and organizations to contribute to political parties without the burden of additional financial obligations.

Commissions Paid for Electoral Bonds

Sharing further details, Minister Chaudhary revealed that the commission paid to SBI by the Government of India for the issuance and redemption of Electoral Bonds from Phase I to Phase XXV amounts to approximately Rs 8.57 crore. Additionally, the government has disbursed around Rs 1.90 crore to the Security Printing & Minting Corporation of India Ltd (SPMCIL) for their services in this regard.

SEBI-Sahara Refund Account Update

In a separate development, the government provided an update on the SEBI-Sahara Refund Account, which holds Rs 5,000 crore. An online portal was launched on July 18, 2023, to facilitate the submission of refund claims by genuine depositors of four Multi-State Cooperative Societies of Sahara Group. The entire process is being overseen and monitored by Justice R. Subhash Reddy, a former Supreme Court judge.

Disbursement of Refunds

Currently, the process involves disbursing payments of up to Rs 10,000 to each verified depositor of the Sahara Group of Cooperative Societies. These payments are made through Aadhaar-seeded bank accounts to ensure accuracy and security.

Progress of Refund Disbursements

As of January 31, 2024, approximately 1.21 crore applications have been registered on the CRCS-Sahara Refund Portal. Out of these, 2,77,607 depositors have received a total amount of Rs 258.47 crore. The government is committed to continuing this process to ensure that all genuine depositors receive their rightful dues.

RBI's Liquidity Injections

In another significant development, the Reserve Bank of India (RBI) has taken proactive measures to inject liquidity into the banking system during the financial year 2023-24. Through eight fine-tuning variable rate repo (VRR) operations and three VRR main operations, the RBI has infused a substantial amount of liquidity, totaling Rs 8 lakh crore and Rs 4.7 lakh crore, respectively.

Impact on Non-Food Credit

These liquidity injections have positively influenced the growth of non-food credit, which witnessed a year-on-year increase of 18.6% during the period from April to November 2023. This surge in non-food credit indicates an expansion in lending activities, supporting economic growth and development.

The issuance of Electoral Bonds, the progress in the SEBI-Sahara Refund Account, and the RBI's liquidity injections are significant developments that have a profound impact on the financial landscape of India. These initiatives contribute to greater transparency, accountability, and stability in the financial system, fostering economic growth and development.