SBI authorized to issue and encash electoral bonds through 29 branches

NEW DELHI: The Ministry of Finance has granted authorization to the State Bank of India (SBI) for the issuance and encashment of electoral bonds through its 29 authorized branches.

"The State Bank of India (SBI), in the XXX Phase of sale, has been authorized to issue and encash electoral bonds through its 29 authorized branches (as per list enclosed) with effect from January 2 to January 11," it stated.

"The Electoral Bonds shall be valid for fifteen calendar 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 official statement added.

"The electoral bond deposited by an eligible political party in its account shall be credited on the same day," it further added.

The Government of India has notified the Electoral Bond Scheme 2018 vide Gazette Notification No. 20 dated January 2, 2018 (as amended vide Gazette Notification dated November 7, 2022), it stated.

According to the official statement, 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 electoral bonds shall be encashed by an eligible political party only through a bank account with the authorized bank," the statement further stated.