InvestorQ : What is an electoral bond and how can I buy it from the State Bank of India(SBI)?
Suresh Patil made post

What is an electoral bond and how can I buy it from the State Bank of India(SBI)?

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Gauravi Patel answered.
7 months ago
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An electoral bond is like a promissory note that can be bought by an Indian citizen or any company incorporated in India from specific branches of State Bank of India. The purchaser can then donate the bond to any eligible political party of his choice. These bonds are similar to banknotes which become payable to the bearer on demand and are interest-free. An individual or party can purchase these bonds either through cheque or any other digital mode.

The bonds are issued in multiples of Rs 1,000, Rs 10,000, Rs 1,00,000 and Rs 1 crore. The receiver can then encash the bonds through the verified account of the party and shall be valid for a maximum of 15 days. These bonds are issued at the first 10 days of each year and this year also it shall be available from January 1, 2021, to January 10, 2021. It shall be available on 29 authorized branches of the State Bank of India.

The recipient with an account with an authorized bank can encash these bonds and only the parties that are registered can accept/received the electoral bonds. If the bond is deposited by the political party after the expiry of 15 days, no payment shall be made against it.
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