New Delhi: Acting on its 2017 announcement, the government has authorized the State Bank of India (SBI) to issue and encash the first electoral bonds in the country.
The public bank will be issuing the bonds from March 1 this year, it was announced on Thursday.
The bonds can be purchased for 10 days starting March 1 from the four main city branches of SBI- Parliament Street, New Delhi, Rajaji Salai, Chennai, Strand Road, Kolkata and Horniman Circle, Mumbai.
Earlier the union government had notified the Electoral Bond Scheme 2018 through a gazette notification on January 2.
As per the provisions of the scheme, electoral bonds may be purchased by persons who are Indian citizens or entities established or incorporated in India.
Only political parties registered under Section 29A of the Representation of the People Act, 1951 and which secured not less than one per cent of the votes polled in the last general election to Parliament or legislative assembly, would be eligible to receive the bonds.
The bonds, which have been introduced to bring 'transparency' to political funding can be encashed by the political parties through a bank account with the authorized bank.
The bond deposited by the party to its account shall be credited on the same day.
Electoral bonds once purchased would be valid for 15 days from the date of issue and cannot be encashed if deposited after the expiry of the validity period.