We have always thought that ‘From where does all the money come to Political Parties when they are not in power?’ Not the illegal part but the legal sources that are allowed by the Government of India by which one Party can run their internal processes and promote themselves for the future elections.
Electoral bonds is a financial instrument used for the transfer of funds from one individual to their choice of Party. They are in form of Bonds.
Yes, anyone who holds a nationality of India can buy these bonds. These bonds are available in form of multiples of ₹1000, ₹10000, ₹100000, ₹1000000, ₹10000000 and in unlimited denominations.
The Government of India has appointed State Bank of India (SBI) for the processing of the Bonds. So, any individual or group of individuals can buy these bonds from any branch of SBI. Although these bonds are only available for 10 days in the Months of Q1 January, Q2 April, Q3 July, Q4 October. Further 30 days are extended in the time of elections by the Central Government of India.
No, not all the parties are eligible for getting a bond. Only those parties which comes under Section 29 (A) Representation of People Act 1951 and those parties which have got at least one percent of votes in the last Legislative Assembly or Lok Sabha Elections are eligible to get a Bond.
When anyone buys a bond the Bank do check the identity of the individual by the KYC process but no names are written on the bonds. The Individual has to buy bond and sent it to the Political parties Address within 15 days of buying the bond. As the bonds are valid for only 15 days after the issuing. After 15 days if the Party fails to cash the Bond amount from the Bank. The Amount goes to the Prime Minister Relief Fund.
As we all know as common middleclass person we don't have enough money to fulfill our need so mostly these bonds are not bought by any middleclass individual. But for a second imagine yourself as an one of the Top Class Billionaire Businessman/Businesswomen who wants to engage the Public and wants a support to uplift your organization. If Your Annual Turnover is in let's say Zillions of money it won't be that awkward to give a little handful of money to these Power holding Political Parties.
So now You know how these Political Parties make Money when not in Power or in Power as well.
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Lots of Love
-Prateek
