Context:
The government announced the sale of the 28th tranche of electoral bonds from October 4 to 13 at all authorised branches of the State Bank of India.
Key Details – Electoral Bonds
What is an Electoral Bond?
- An interest-free financial instrument for making anonymous donations to political parties: resembles a promissory note
What is the purpose of these bonds?
- To cleanse the system of political funding in the country.
- To limit the use of cash in political funding, eliminate fraudulent political parties, protect donors from political victimization, curb black money, etc.
Who may purchase these Bonds?
- A citizen of India or a body incorporated in the country
What are different Bond Denominations?
- 1,000, 10,000, 100,000, 1 million, 10 million can be purchased from selected branches of SBI
- State Bank of India is the Authorized Issuer of Electoral Bonds
When may such bonds be bought?
- Available for purchase for 10 days each in January, April, July, & October
What are the modes of Purchase and Encashment?
- Electoral Bonds can be purchased digitally or through cheques.
- Encashment only through an authorized bank account of the political party.
What is its lifespan?
- Redeemable in the designated account of a registered political party within 15 days since issuance
Which Political Parties are eligible to receive donations through Electoral Bonds?
- Political parties who have at least secured 1% votes in the last Lok Sabha or state assembly elections and are registered under Section 29A of the Representation of the People’s Act, 1951
When was it announced?
- Electoral bond scheme was announced in Union Budget 2017-18.
What are the other features?
- No limit exists on the number of bonds an individual or company can purchase.
- SBI deposits bonds that a political party hasn’t encashed within 15 days into the Prime Minister’s Relief Fund.
Source: The Hindu
Previous Year Question
With reference to the funds under Members of Parliament Local Area Development Scheme (MPLADS), which of the following statements are correct?
1. MPLADS funds must be used to create durable assets like physical infrastructure for health, education, etc.
2. A specified portion of each MP’s fund must benefit SC/ST populations.
3. MPLADS funds are sanctioned on a yearly basis and the unused funds cannot be carried forward to the next year.
4. The district authority must inspect at least 10% of all works under implementation every year.
Select the correct answer using the code given below:
[UPSC Civil Services Exam – 2020 Prelims]
(a) 1 and 2 only
(b) 3 and 4 only
(c) 1, 2 and 3 only
(d) 1, 2 and 4 only
Answer: (d)
Explanation:
Funds left in the district can be carried forward for utilization in the subsequent years. Hence, Statement 3 is not Correct.
