The electoral bonds system, introduced in 2017 via a Finance bill and implemented in 2018, facilitates anonymous donations to registered political parties.
State Bank of India (SBI) issues bonds in various denominations, interest-free and payable to the bearer on demand.
Who can Buy?
Indian citizens and entities established in India can purchase them individually or jointly.
Bonds are valid for 15 calendar days. SBI, the authorized issuer, distributes them through designated branches.
Only parties registered under Section 29A of the Representation of the People Act, 1951, and securing at least 1% of votes in the last general election, can receive these bonds.
Mode of Purchase
They can be purchased digitally or via cheques, but encashment is only possible through the party’s authorized bank account.
Transparency is ensured as parties must disclose their bank account with the Election Commission of India (ECI), and donations are processed through banking channels. Parties are also obligated to explain how the funds received are utilized.