The government on Wednesday approved the issuance of the 21st tranche of election bonds which will be on sale from July 1.
Campaign bonds have been touted as an alternative to cash donations to political parties as part of efforts to ensure transparency in political financing.
The State Bank of India (SBI), in the 21st phase of sale, has been authorized to issue and encash election bonds through its 29 authorized branches with effect from July 1 to July 10, the Ministry of Finance said. Finances in a press release.
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Authorized SBI branches include those in Lucknow, Shimla, Dehradun Kolkata, Guwahati, Chennai, Patna, New Delhi, Chandigarh, Srinagar, Gandhinagar, Bhopal, Raipur and Mumbai.
Assembly elections are scheduled in Gujarat and Himachal Pradesh later this year. Polls for five states – Uttar Pradesh, Uttarakhand, Punjab, Himachal Pradesh and Goa – ended in March this year.
The 20th tranche of bond sales took place from April 1 to April 10, 2022. The sale of the first batch of election bonds took place from March 1 to March 10, 2018.
The SBI is the only bank authorized to issue election bonds.
An election deposit will be valid for 15 days from the date of issue. No payment will be made to a political party if the bond is posted after the validity period has expired, the statement said.
Election bonds can be purchased by Indian citizens or entities incorporated or established in the country. Registered political parties that received at least 1% of the vote in the last Lok Sabha or Legislative Assembly election are eligible to receive funding through election bonds.