Electoral Bond Scheme

The Government notified the scheme of Electoral Bonds in 2018 to cleanse the system of political funding in the country.

Broad Features of the Scheme: Electoral Bond would be a bearer instrument in the nature of a Promissory Note and an interest free banking instrument. A citizen of India or a body incorporated in India will be eligible to purchase the bond.

• A bearer instrument does not carry any information about the buyer or payee and the holder of the instrument (which is the political party) is presumed to be its owner.
• Electoral bond would be issued/purchased for any value, in multiples of Rs. 1,000, Rs. 10,000, Rs. 1,00,000, Rs. 10,00,000 and Rs. 1,00,00,000 from the specified branches of the State Bank of India (SBI).
• Donors can purchase and subsequently donate the bonds only to the political parties registered under section 29A of the Representation of the Peoples Act, 1951 (43 of 1951) and which secured not less than one per cent of the votes polled in the last general election to the House of the People or a Legislative Assembly.
• There is no limit on the number of bonds an individual or company can purchase.
• The bond shall be encashed by an eligible political party only through a designated bank account with the authorised bank.
• If a political party hasn’t enchased the bond within 15 days then SBI deposits those bonds into the Prime Minister’s Relief Fund.