You are here: Home » Economy & Policy » News
Business Standard

Jaitley outlines contours of electoral bonds for political parties' funding

Interest-free bonds can be purchased from SBI for 10 days in the months of Jan, April, July & Oct; bonds not to carry name of payee

Topics
Electoral Bond

Press Trust of India  |  New Delhi 

Arun Jaitley in RS
Arun Jaitley in RS (Photo: PTI)

In a bid to clean up election funding, Finance Minister Arun Jaitley today came out with contours of new 'electoral bonds' that can be bought from specified branches of SBI and used to donate money to political parties.

The bearer instrument will not carry the name of the payee and can be bought for any value, in multiples of Rs 1,000, Rs 10,000, Rs 100,000, Rs 1 million and Rs 10 million, he said in a statement in the Lok Sabha.

Although called a bond, they will be interest-free debt instruments that resemble promissory notes where the SBI will be the custodian of the donor's funds until the political parties are paid.

The electoral bonds with a life of only 15 days, during which it can be used for making donation only to registered political parties, can be encashed only through a designated bank account of the receiver.

The bonds will be available for purchase for 10 days each in the months of January, April, July and October. The window would be for 30 days in the year of general election.

Jaitley said the purchaser, whose name will not appear on the bonds, would have to make KYC disclosures to the SBI.

"A citizen of India or a body incorporated in India will be eligible to purchase the bond," he said.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, January 02 2018. 17:06 IST
RECOMMENDED FOR YOU
.