The Indian lender, State Bank of India (SBI) is set to launch the 28th tranche of electoral bonds for sale, starting October 4, 2023. The sale will last for ten days, ending on October 13, as per a statement released by the finance ministry.
Electoral bonds are a bearer banking instrument designed to fund eligible political parties. To qualify, a party must be registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) and have secured at least one percent of the votes in the last General Election to the House of the People or the Legislative Assembly.
The SBI, in its XXVIII Phase of sale, has been authorized to both issue and encash these bonds through its network of 29 branches across India. These branches include Bengaluru, Lucknow, Shimla, Dehradun, Kolkata, Guwahati, Chennai, Patna, New Delhi, Chandigarh, Srinagar, Gandhinagar, Bhopal, Raipur, and Mumbai.
As per the scheme’s provisions, electoral bonds may be purchased by a person who is a citizen of India or an entity established in India. The term “person” covers a wide range of entities including individuals, Hindu Undivided Families (HUFs), companies, firms, associations or bodies of individuals (whether incorporated or not), artificial juridical persons not falling within any of the preceding categories and any agency, office or branch owned or controlled by such persons.
The bonds will be issued in denominations ranging from Rs 1,000 to Rs 1 crore, making it possible for contributors with different financial capacities to participate in the funding process.
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