Centre approves issuance of 16th tranche of electoral bonds from April 1

Amid the ongoing Assembly elections in four states and a Union territory, the Ministry of Finance on Tuesday informed that the issuance of the 16th tranche of electoral bonds will be open for sale from April 1 to 10.

Electoral bonds have been pitched as an alternative to cash donations made to political parties as part of efforts to bring transparency in political funding.

The electoral bonds can be purchased by a person who is a citizen of India or incorporated or established in India, according to a press release issued by the Ministry of Finance.

"The State Bank of India (SBI), in the XVI Phase of sale, has been authorised to issue and encash electoral bonds through its 29 authorised branches wef April 1 to April 10," it said.

Only the political parties registered under Section 29A of the Representation of the People Act, 1951 (43 of 1951) and which secured not less than one per cent of the votes polled in the last General Election to the House of the People or the Legislative Assembly of the State, will be eligible to receive the electoral bonds.

The electoral bonds will be encashed by an eligible political party only through a bank account with the authorised bank.

"It may be noted that Electoral Bonds shall be valid for fifteen calendar days from the date of issue and no payment shall be made to any payee Political Party if the Electoral Bond is deposited after expiry of the validity period. The Electoral Bond deposited by an eligible Political Party in its account shall be credited on the same day," the Ministry said.

( With inputs from ANI )