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Electoral Bonds : Update

Electoral Bonds : Update

The Supreme Court of India has referred the challenge to the validity of the electoral bonds scheme, which allows anonymous donations to political parties, to a Constitution Bench of five judges.

  • The case also pertains to the passage of the electoral bonds scheme as a Money Bill
  • The electoral bonds system was introduced in 2017 by way of a Finance bill and it was implemented in 2018.
  • They serve as a means for individuals and entities to make donations to registered political parties while maintaining donor anonymity.


  • State Bank of India (SBI) issues the bonds in denominations of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh, and Rs 1 crore.
  • EB is Payable to the bearer on demand and interest-free.
  • Purchased by Indian citizens or entities established in India.
  • Can be bought individually or jointly with other individuals.
  • Valid for 15 calendar days from the date of issue.
  • SBI is the authorized issuer.
  • Electoral Bonds are issued through designated SBI branches.
  • Only the political parties registered under Section 29A of the Representation of the People Act, 1951 and have secured not less than 1% of the votes polled in the last general election to the House of the People or the Legislative Assembly, are eligible to receive electoral bonds
  • Electoral Bonds can be purchased digitally or through cheques.
  • Encashment only through an authorized bank account of the political party.
  • Parties must disclose their bank account with the Election Commission of India (ECI).
  • Donations are made through banking channels, ensuring transparency.
  • Political parties are obligated to explain the utilization of the funds received.