The State Bank of India (SBI) is set to commence the sale of the 28th tranche of electoral bonds starting tomorrow, which will run for ten days. This development follows an official statement from the Finance Ministry authorizing SBI to issue and encash electoral bonds through its 29 authorized branches from October 4 to October 13, a slightly shorter validity period compared to the usual 15 days.
Expectations and Controversy: Amid expectations and controversy, political leaders have weighed in on this latest tranche. Congress senior leader P Chidambaram characterized the 28th Tranche of Electoral Bonds as a ‘golden harvest’ for the Bharatiya Janata Party (BJP), suggesting that, based on past records, approximately 90% of the anonymous donations could flow to the BJP.
Electoral Bonds Background: Electoral bonds serve as a means of funding eligible political parties while preserving the anonymity of contributors. Introduced in 2017 and implemented in 2018, these bonds have been a notable funding mechanism, particularly during the Lok Sabha elections in 2019. An ‘eligible political party,’ as defined by the bank, is one that has registered under Section 29A of the Representation of the People Act, 1951, and has secured at least one percent of the votes in the last General Elections.
Previous Distribution: In the previous elections, the BJP secured the largest share of electoral bonds, with reports indicating that it received over 52%, equivalent to Rs. 5,271.9751 crore. The Congress party held the second-highest share of electoral bonds, amounting to Rs. 952.2955 crore.
Electoral Bond Details: These bonds, issued exclusively by the State Bank of India (SBI), are available in denominations of Rs. 1,000, Rs. 10,000, Rs. 1 lakh, Rs. 10 lakh, and Rs. 1 crore. Notably, electoral bonds are interest-free and can be purchased by any Indian individual or India-based entity.
Note: The article provides information about the commencement of the 28th tranche of electoral bonds by SBI, expectations, and the background of electoral bonds in Indian politics.
