SBI billed govt Rs 10.68 crore as 'commission' for electoral bonds

The amount was charged across 30 phases with fees ranging from Rs 1.82 lakh to Rs 1.25 crore

The State Bank of India (SBI) billed the Finance Ministry a total of Rs 10.68 crore as “commission” for the sale and redemption of electoral bonds between 2018 and 2024, according to a report by a national daily which referred to correspondence between the two entities to arrive at this conclusion.

This amount was charged across 30 phases of the electoral bond scheme, with fees ranging from Rs 1.82 lakh for the fourth phase to Rs 1.25 crore for the ninth phase before the 2019 Lok Sabha elections.

Correspondence between SBI and the Ministry of Finance revealed various concerns. While discussions about “commission” comprised a significant portion of the correspondence, the bank also flagged issues such as “erroneous printing” of bonds and anticipated increases in bond sales ahead of elections.

Documents obtained through a Right to Information (RTI) application by Indian Express also showed that SBI regularly reminded the ministry to settle outstanding dues. 

In one instance, then SBI Chairman Rajnish Kumar wrote to then Economic Affairs Secretary S C Garg, highlighting unpaid dues amounting to Rs 77.43 lakh for seven phases of the scheme. The Chairman outlined how the commission was calculated, citing government commission rates and the complexities of the scheme.

Disputes also arose between the two entities over the imposition of 18 per cent GST on the commission, with the ministry also levying a two per cent Tax Deducted at Source (TDS) on the GST in one instance. SBI sought a refund of Rs 6.95 lakh deducted as TDS on GST.

Additionally, SBI provided details on the quantity and value of unredeemed electoral bonds sent to the Prime Minister's Relief Fund (PMRF) for each phase.

The bank also raised concerns about printing errors in electoral bonds and predicted a surge in demand before elections. It highlighted cases where bond serial numbers were printed over hidden serial numbers, intended to be visible only under ultraviolet (UV) light.

SBI recommended printing more bonds to meet the expected demand before the 2019 Lok Sabha elections and reiterated similar suggestions in January 2024, five weeks before the Supreme Court struck down the scheme, deeming it unconstitutional.