29th Tranche of Electoral Bonds Opens Today: All the Information You Need to Know About Price, Eligibility, and Dates

Today, November 6, marks the beginning of the 29th tranche of electoral bonds sales. A month or so has passed since the 28th round of electoral bonds went on sale. This newest round coincides with assembly elections in five states: Rajasthan, Madhya Pradesh, Chhattisgarh, Telangana, and Mizoram.

The finance ministry released a statement last week stating, “Government of India has authorised State Bank of India (SBI), in the XXIX Phase of sale, to issue and encash Electoral Bonds through its 29 Authorised Branches w.e.f. November 6-20, 2023.”

How Do Electoral Bonds Work?

In an attempt to increase openness in political fundraising, electoral bonds have been promoted as an alternative to financial contributions to political parties.

The purpose of the 2017 introduction of the bonds was to purge the nation’s political fundraising system. “Even 70 years after Independence, the country has not been able to evolve a transparent method of funding political parties which is vital to the system of free and fair elections,” said former finance minister Arun Jaitley in his budget speech on February 1, 2017.The majority of money that political parties collect still comes from cash contributions made anonymously. Therefore, an attempt to purify India’s political fundraising structure is necessary.

Election Bonds Are Purchased By Whom?

Any Indian citizen or organization that has been incorporated or created in the nation may purchase these bonds. The bonds may be purchased alone or in combination with other people. The buyer would only be able to acquire an electoral bond (or bonds) if all current KYC requirements were met and payment was made from a bank account. It won’t have the payee’s name on it.

In the months of January, April, July, and October, there are ten days each during which the bonds may be purchased. It is now possible to purchase electoral bonds from October 4 through October 13.

Who Is Eligible to Get Election Bonds?

To be eligible to receive electoral bonds, political parties must be registered under Section 29A of the Representation of the People Act, 1951, and must have received at least one percent of the votes cast in the most recent Lok Sabha or state elections.

How Can I Buy Bonds for Elections?

The government-owned State Bank of India (SBI) has 29 licensed offices where you may purchase bonds in multiples of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 crore. Lucknow, Shimla, Dehradun, Kolkata, Guwahati, Chennai, Patna, New Delhi, Chandigarh, Srinagar, Gandhinagar, Bhopal, Raipur, and Mumbai are the locations of the authorized SBI branches.

Within fifteen days after the bond’s issuance date, the recipient political party may redeem the bonds. The party receives no money if the bonds are not redeemed within 15 days. On the same day that the bond is placed with the bank, the redeemed value is credited into the political party’s account. An qualified political party may only cash the electoral bonds via a bank account with an authorized bank.

You may purchase the electoral bonds from any SBI branch that has been authorized by paying with a check or online. No cash is accepted. After that, the donor may give the bonds to any political party they want, and within 15 days of the bonds’ issuance date, the party can cash them.

The most recent round of electoral bonds was authorized by the government a few days after the Supreme Court postponed rulings on a number of cases contesting the legality of the electoral bonds program for financing political parties. Chief Justice D Y Chandrachud, Justices Sanjiv Khanna, B R Gavai, J B Pardiwala, and Manoj Misra make up the five-judge constitution bench. On October 31, the bench began hearing arguments on four petitions, including ones from Congressman Jaya Thakur, the Communist Party of India (Marxist), and the non-governmental organization Association for Democratic Reforms (ADR).

Following a thorough hearing on the case, the Supreme Court set aside its decision until November 2. The administration announced the issuing of the most recent tranche of electoral bonds two days later. Note that November 7 is scheduled for Mizoram and the first round of the Chhattisgarh assembly votes. All five of these states would conclude voting on November 30. Votes would then be counted on December 3.