On March 21, the State Bank of India (SBI) announced that it has provided the Election Commission of India (ECI) with comprehensive details regarding the electoral bond scheme, including the individual unique identifiers. This action was taken in compliance with the recent directive from the Supreme Court instructing the SBI to share this information.Every electoral bond is assigned a distinct number, linking the buyer of the bond to the political party that redeemed it. The identities of the purchasers and the associated parties were previously disclosed to the public on March 14 through two distinct lists.What is Electoral BondAn electoral bond is a bearer banking instrument used to fund political parties. The scheme is designed to provide financial assistance to eligible political parties in India.How long is the Electoral Bond validElectoral bond is valid for 15 days from the date of issue.How Electoral Bonds can be redeemedElectoral bonds can only be redeemed by an eligible political party by depositing the same in the designated bank account of the party in an authorized bank.Who can buy Electoral BondsCitizens of India or companies incorporated or established in India can purchase Electoral Bonds.At what price are Electoral Bonds soldElectoral bonds are available in denominations of ₹1000, ₹10,000, ₹1,00,000, ₹10,00,000, and ₹1,00,00,000.What are the KYC norms for purchasing Electoral BondsKYC norms prescribed by the Reserve Bank of India are applicable to all those who wish to purchase Electoral Bonds.What documents are required to purchase electoral bondsCopies of application form, pay-in-slip, proof of citizenship, and KYC documents (along with original documents) are required.How many times can a person buy electoral bondsA person can buy electoral bonds as many times as he wants. Every time fresh KYC documents should be submitted.Can Electoral Bonds be purchased onlineElectoral bonds can be purchased online. Payment can be made by cheque, DD, NEFT/RTGS or direct debit to the applicants account.Can Electoral Bonds be purchased using foreign currencyNo, payment for issue of Electoral Bonds will be accepted in Indian Rupees only.Who is eligible to open a current account to redeem electoral bondsOnly political parties registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) have secured less than one per cent of the votes cast in the last general election for the House of the People or the Legislative Assembly. deserveCan a political party open a current account in any bank to redeem electoral bondsNo, current account can be opened only in four designated authorized SBI branches. Existing current accounts of political parties can also be used at these authorized SBI branches, provided they are amended with the new product code.Can political parties withdraw cash from bank after redeeming electoral bondsNo, under no circumstances will cash payment be provided against Electoral Bonds.What happens if a political party fails to secure less than one percent of the votes polled in the next election after opening a current accountIf a political party is de-notified before the next issue of electoral bonds, the bank will change the product code of their account to a normal current account code, making them ineligible to receive electoral bond deposits.Can a political party use this current account for other banking transactionsYes, political party is allowed to use this current account for other banking activities.What is the rate of interest payable on electoral bondsNo interest is payable on electoral bonds under this scheme.Can a political party close this current account after electionsYes, the account can be maintained for normal banking activities and if necessary, the political party can decide to close the account at any time.If a political party does not have an account in the designated SBI branches, can they deposit electoral bonds in another accountNo, Electoral Bonds can be deposited only through a bank account maintained with designated SBI branches by an eligible political party.Can the account of existing political parties be used to deposit proceeds from electoral bondsYes, an existing account can also be used by a political party. However, only one account can designate a political party eligible to receive funds from electoral bonds.
