Donors can purchase the bonds from the State Bank of India (SBI) by making payments digitally or through cheque. The SBI is the only bank authorised to issue the bond. An electoral bond can be purchased by any donor with a KTYC-complaint bank account. (KYC: Know Your Customer. It means that the name, address and contact details of the customer are available with the bank.)
The donors are then free to gift/donate the bond to a registered political party.
The political party has to encash the bond only through an account with the authorised bank, which is the SBI. Electoral bonds are essentially like bearer cheques. The issuing bank will remain the custodian of the donar’s funds until the political party redeems the bond.
Political parties which secured at least 1% of the votes in the recent parliamentary or assembly polls are eligible to encash these bonds.
The bonds can be purchased for any value in multiples of Rs. 1000, Rs. 10,000, Rs. 1 lakh, Rs. 10 lakh and Rs. 1 crore.
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