19th Tranche of Electoral Bonds Approved
Central government approved the issuance of 19th tranche of electoral bonds on December 31, 2021, ahead of assembly elections in five states.
Highlights
- Sale of electoral bonds will be open from January 1 to 10, 2022.
- State Bank of India (SBI) has been authorised to issue and encash the bonds through its 29 Authorized Branches.
- Assembly elections are scheduled for 5 states namely, Uttar Pradesh, Uttarakhand, Himachal Pradesh, Punjab, and Goa.
What is Electoral Bond?
Electoral Bond is a financial instrument, used to make donations to political parties. These bonds are issued in multiples of 1000, 10000, 1 lakh, 10 lakh and 1 crore rupees, without any maximum limit. SBI is the only authorised bank to issue these bonds. From the date of issuance, the bonds are valid for fifteen days. They can be redeemed in designated account of a registered political party. Donor’s name is not mentioned on it.
Who can purchase the bonds?
Any person, who is a citizen of India or is established in India, can purchase these bonds, for a period of ten days each in the months of January, April, July and October. Person can buy bonds wither singly or jointly with other individuals.
Sale of bonds
Sale of first batch of electoral bonds took place from March 1-10, 2018. The 18th tranche of bond sale took place in between September 1-10, 2021.
Which parties can take the donation?
Parties registered under Representation of the People Act 1951 are entitled to receive donations through electoral bonds. Furthermore, these parties should not have secured less than 1% of the votes polled in last held elections.
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Month: Current Affairs - December, 2021