The Government of India notifies the Scheme of Electoral Bonds to cleanse the system of political funding in the country

The Government of India notifies the Scheme of Electoral Bonds to cleanse the system of political funding in the country; Electoral Bond would be a bearer instrument in the nature of a Promissory Note and an interest free banking instrument; Bond(s) would be issued/purchased for any value, in multiples of Rs. 1,000, Rs. 10,000, Rs. 1,00,000, Rs. 10,00,000 and Rs. 1,00,00,000 from the Specified Branches of the State Bank of India (SBI).

The Government of India today notified the Scheme of Electoral Bonds to cleanse the system of political funding in the country.

The broad Features of the Scheme are given below:

Electoral Bond would be a bearer instrument in the nature of a Promissory Note and an interest free banking instrument. A citizen of India or a body incorporated in India will be eligible to purchase the bond.

Electoral Bond (s) would be issued/purchased for any value, in multiples of Rs. 1,000, Rs. 10,000, Rs. 1,00,000, Rs. 10,00,000 and Rs. 1,00,00,000 from the Specified Branches of the State Bank of India (SBI).

The purchaser would be allowed to buy Electoral Bond(s) only on due fulfilment of all the extant KYC norms and by making payment from a bank account. It will not carry the name of payee. Electoral Bonds would have a life of only 15 days during which it can be used for making donation only to the political parties registered under section 29A of the Representation of the Peoples Act, 1951 (43 of 1951) and which secured not less than one per cent of the votes polled in the last general election to the House of the People or a Legislative Assembly.

The Electoral Bonds under the Scheme shall be available for purchase for a period of 10 days each in the months of January, April, July and October, as may be specified by the Central Government. An additional period of 30 days shall be specified by the Central Government in the year of the General election to the House of People.

The Electoral Bond(s) shall be encashed by an eligible political party only through a designated bank account with the authorised bank.

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Category : Corporate Law (3922)
Type : News (13627)
Tags : Government Policy (1974)

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