These bonds can be issued and purchased in multiples Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh and Rs 1 crore through these select branches, FM Jaitley said in Lok Sabha.
The government confirmed and finalised the issuance norms of electoral bonds on Tuesday, during the ongoing winter session of Parliament, reports CNBC TV-18.
Electoral bonds will be bearer bonds with a life of 15 days and will not carry the name of the payee. These will be interest-free banking instruments like promissory notes which can be encashed by political parties through specific branches of State Bank of India.
These bonds can be issued and purchased in multiples Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh and Rs 1 crore through these select branches, Finance Minister Arun Jaitley said in the Lok Sabha.
The bonds can be bought during a 10-day window in the months January, April, July and October. An additional period Of 30 days will be specified in 2019, the year of general elections.
The purchaser will be allowed to buy bonds only if he or she has completed their Know Your Customer (KYC) norms and will be allowed to buy bonds only by making payment from a bank account.These bonds will undergo five steps. First, the notified banks will be chosen, which as of now are select SBI branches. Then, the banks will issue the bonds. The bond can be bought via cheques or via digital payments. The donor will then have to specify the party of his or her choice within the specified period. Lastly, the party will deposit the bond in the bank account and the details will be stored with the Election Commission.