The Government of India has taken a significant step to facilitate political funding and enhance transparency by introducing Electoral Bonds. In its XXIX Phase of sale, the State Bank of India (SBI) has been authorized to issue and encash Electoral Bonds through its 29 Authorised Branches. This move aims to streamline the process of political donations and empower citizens and organizations to participate in the democratic process. In this article, we’ll provide an overview of the Electoral Bond Scheme, how to obtain and use them, and the key dates for the upcoming phase.
Understanding Electoral Bonds:
Electoral Bonds are a financial instrument designed to enable transparent and legitimate political contributions. The Government of India introduced the Electoral Bond Scheme in 2018, with subsequent amendments in 2022. According to the scheme, any individual who is a citizen of India or an entity incorporated or established in India can purchase Electoral Bonds, either individually or jointly with others.
Eligibility for Political Parties:
To receive Electoral Bonds, political parties must meet specific criteria. Only those political parties that are registered under Section 29A of the Representation of the People Act, 1951, and have secured at least one percent of the votes in the last General Election to the House of the People or the Legislative Assembly of the State are eligible. This requirement ensures that Electoral Bonds are channeled to parties with a significant public mandate.
Key Dates for XXIX Phase:
The upcoming phase of Electoral Bond issuance and encashment is scheduled from 6th November 2023 to 20th November 2023. It’s essential to note that these bonds have a validity period of 15 calendar days from the date of issue. Therefore, it’s crucial to ensure that the bonds are deposited in the accounts of eligible political parties within this timeframe.
Encashment Process:
The process of encashing Electoral Bonds is straightforward. An eligible political party can deposit the Electoral Bonds in its account at an Authorised Bank, and the credit for the deposited bonds will be processed on the same day. This mechanism ensures timely and transparent financial transactions for political funding.
Conclusion:
Electoral Bonds, authorized by the Government of India, offer a transparent and accountable way for individuals and entities to contribute to the political process. With SBI’s role in issuing and encashing these bonds, it becomes easier for citizens to participate in the democratic system while ensuring that funds reach eligible political parties. The upcoming XXIX Phase is a significant opportunity for individuals and organizations to engage in this process and support the political parties of their choice. By understanding the guidelines and key dates, you can make a valuable contribution to the Indian democratic system while upholding transparency and accountability.