New Delhi, Jan 1 (IANS): The State Bank of India (SBI) has been authorised to issue and encash electoral bonds through its 29 authorised branches in state capitals with effect from January 2 to January 11.

“Electoral bonds shall be valid for 15 calendar days from the date of issuance and no payment shall be made to any payee political party if the electoral bond is deposited after expiry of the validity period. Electoral bond deposited by an eligible political party in its account shall be credited on the same day,” said a Finance Ministry statement.

The Government of India had notified the Electoral Bond Scheme in January 2018, which was then amended in November 2022.

As per the provisions of the scheme, electoral bonds may be purchased by a person (as defined in item No. 2 (d) of Gazette Notification), who is a citizen of India or incorporated or established in India. A person being an individual can buy electoral bonds, either singly or jointly with other individuals.

Only the political parties registered under Section 29A of the Representation of the People Act, 1951 and which secured not less than 1 per cent of the votes polled in the last general elections or Assembly elections shall be eligible to receive electoral bonds.

The electoral bonds shall be encashed by an eligible political party only through a bank account with an authorised bank, the official statement added.