The Finance Ministry on Wednesday authorised the State Bank of India (SBI) to issue and encash electoral bonds from April 2.
In a statement, the Finance Ministry said, "State Bank of India (SBI), in the 2nd Phase of sale, has been authorised to issue and encash electoral bonds through its 11 Authorised Branches w.e.f. April 2, 2018, to April 10, 2018."
As per provisions of the scheme, electoral bonds may be purchased by a person, who is a citizen of India or incorporated or established in India.
A person being an individual can buy electoral bonds, either singly or jointly with other individuals.
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 percent 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 bonds shall be encashed by an eligible political party only through a bank account with the authorised bank.
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They shall be valid for fifteen days from the date of issue and no payment shall be made to any payee political party if the electoral bond is deposited after the expiry of the validity period.
The bonds deposited by an eligible political party in its account shall be credited on the same day.
The first batch of electoral bonds was released by the SBI for ten days between March 1 to March 10.
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