Understanding the Electoral Bonds Scheme

The Electoral Bond Scheme was a method introduced by the government to allow individuals and corporate entities in India to donate funds to political parties anonymously. It aimed to make political funding more transparent by encouraging donations through banking channels, though the anonymity aspect later became a subject of debate and legal challenges.

Launch of the Electoral Bonds Scheme in January 2018

The Electoral Bonds Scheme was officially launched in January 2018. This scheme laid down specific rules regarding the purchase and encashment of these bonds, including which institutions were authorized to handle them.

Availability of Electoral Bonds

According to the details of the scheme when it was launched, the Electoral Bonds were made available for purchase at specified branches of a particular bank. The government designated only one bank for the sale and encashment of these bonds to ensure a centralized and controlled process.

Authorized Bank for Electoral Bonds

Upon the launch of the Electoral Bonds Scheme in January 2018, the sole bank authorized to issue and encash these bonds through its designated branches was the State Bank of India (SBI). This meant that anyone wishing to purchase an electoral bond could only do so through the specific branches of SBI that were notified for this purpose.

The options provided list various banks. Let's consider them:

• Bank of Baroda
• State Bank of India
• Punjab National Bank
• Bank of India

Based on the scheme's provisions at the time of its launch in January 2018, only the State Bank of India was authorized to handle the sale and encashment of Electoral Bonds.

Revision Table: Key Details of Electoral Bonds Launch

Additional Information about Electoral Bonds

Beyond the authorized bank, the Electoral Bond Scheme had several other key features:

• Denominations: Bonds were issued in denominations of ₹1,000, ₹10,000, ₹1,00,000, ₹10,00,000, and ₹1,00,00,000.
• Eligibility: Any citizen of India or body incorporated in India was eligible to purchase electoral bonds.
• Validity: An electoral bond was valid for fifteen calendar days from the date of issue.
• Recipient Eligibility: Only political parties registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) and which secured not less than one per cent of the votes polled in the last General Election or the Legislative Assembly election were eligible to receive electoral bonds.

Understanding these details provides a comprehensive view of the Electoral Bonds Scheme as it was implemented upon its launch.