In response to RTI query, SBI said electoral bonds worth 280 crore were sold during Bihar election process.
What is Electoral Bond?
Introduced with the Finance Bill (2017), Electoral Bonds allow donors to pay political parties with banks as an intermediary. These bonds can only be issued by the State Bank of India.
Range of a bond – Rs 1000 to Rs 1 crore.
Availability – 10 days each in the months of January, April, July, and October, with an additional period of 30 days specified by the central government in the year of general elections.
Validity – 15 days (from the date of issue)
Any person who is a citizen of India or entities incorporated or established in India can buy electoral bonds. And then donate it to the political party of choice “anonymously”. To buy and transfer these bonds, the person or entity has to provide some authentication details to the bank but the names of donors are kept confidential, even from political parties. Anonymity is intended to prevent the political victimization of the donor.