Government Approves 29th Tranche of Electoral Bonds Ahead of State Assembly Elections
New Delhi, November 3, 2023 – In preparation for the upcoming assembly elections in Rajasthan, Madhya Pradesh, Chhattisgarh, Telangana, and Mizoram, the government has given the green light for the issuance of the 29th tranche of electoral bonds. These bonds, aimed at bringing transparency to political funding, will be available for purchase starting November 6.
The decision to release the electoral bonds comes amidst the ongoing campaigning for the assembly elections, which will take place from November 7 to November 30. The counting of votes is scheduled for December 3.
Electoral bonds serve as an alternative to cash donations made to political parties and have been praised for their potential to increase transparency in the political funding process.
According to a statement from the finance ministry, the Government of India has authorized the State Bank of India (SBI) to issue and encash electoral bonds through its 29 authorized branches. The sale of these bonds will take place from November 6 to November 20, 2023.
The first batch of electoral bonds was introduced in March 2018, and since then, SBI has been the sole authorized bank responsible for their issuance.
The authorized SBI branches include locations such as Bengaluru, Lucknow, Shimla, Dehradun, Kolkata, Guwahati, Chennai, Patna, New Delhi, Chandigarh, Srinagar, Gandhinagar, Bhopal, Raipur, and Mumbai.
The finance ministry emphasized that electoral bonds will have a validity period of 15 calendar days from the date of issue. It further stated that no payment will be made to any payee political party if the bond is deposited after the expiry of the validity period.
To ensure accountability, electoral bonds can only be cashed eligible political parties through their bank accounts with the authorized bank. Individuals or entities incorporated or established in India are allowed to purchase these bonds.
Registered political parties that have secured at least 1% of the votes polled in the previous Lok Sabha or legislative assembly elections are eligible to receive funding through electoral bonds.
The issuance of these electoral bonds aims to enhance transparency and streamline the process of political funding in India. As the countdown to the assembly elections begins, the impact of these bonds on the electoral landscape remains to be seen.