The Finance Ministry on Friday authorised the State Bank of India (SBI) to issue and encash electoral bonds from March 1, 2018.
"State Bank of India (SBI) has been authorised to issue and encash electoral bonds initially at its four authorised branches, namely, 84, Rajaji Salai, Chennai; Samriddhi Bhawan, 1, Strand Road, Kolkata; Horniman Circle, Fort, Mumbai; and 11, Parliament Street, New Delhi," Finance Ministry said in a statement.
"The first issue of the scheme will be opened in March 2018 in place of January 2018 for the first quarter of 2018. Accordingly, the first sale of electoral bonds will commence from March 1, 2018 for a period of 10 days i.e. up to March 10, 2018," it added.
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.
Electoral bonds shall be valid for fifteen days from the date of issue and no payment shall be made to any payee political party if the bond is deposited after expiry of the validity period.
The bond deposited by any eligible political party to its account shall be credited on the same day.
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