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Union of India - Act

The Electoral Bond Scheme, 2018

UNION OF INDIA
India

The Electoral Bond Scheme, 2018

Rule THE-ELECTORAL-BOND-SCHEME-2018 of 2018

  • Published on 2 January 2018
  • Commenced on 2 January 2018
  • [This is the version of this document from 2 January 2018.]
  • [Note: The original publication document is not available and this content could not be verified.]
The Electoral Bond Scheme, 2018Published vide Notification No. S.O. 29(E), dated 2.1.2018S.O. 29(E). - In exercise of the powers conferred by sub-section (3) of Section 31 of the Reserve Bank of India Act, 1934 (2 of 1934), the Central Government hereby makes the following Scheme, namely:-

1. Short title and commencement.

(1)This scheme may be called the Electoral Bond Scheme, 2018.
(2)It shall come into force on the date of its publication in the Official Gazette.

2. Definition.

- In this Scheme, unless the context otherwise requires, --
(a)"electoral bond" means a bond issued in the nature of promissory note which shall be a bearer banking instrument and shall not carry the name of the buyer or payee;
(b)"authorised bank" means the State Bank of India authorised to issue and encash the bonds in the branches specified in Annexure I to this notification;
(c)"issuing branch" means a designated branch of the authorised bank specified in Annexure I for issuing electoral bonds;
(d)"person" includes-
(i)an individual;
(ii)a Hindu undivided family;
(iii)a company;
(iv)a firm;
(v)an association of persons or a body of individuals, whether incorporated or not;
(vi)every artificial juridical person, not falling within any of the preceding sub-clauses; and
(vii)any agency, office or branch owned or controlled by such person.

3. Eligibility for purchase and encashment of electoral bond.

(1)The Bond under this Scheme may be purchased by a person, who is a citizen of India or incorporated or established in India.
(2)A person being an individual can buy bonds, either singly or jointly with other individuals.
(3)Only the political parties registered under section 29A of the Representation of the People Act, 1951 (43 of 1951) and 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, as the case may be, shall be eligible to receive the bond.
(4)The bond shall be encashed by an eligible political party only through a bank account with the authorised bank.

4. Applicability of Know Your Customer Norms.

(1)The extant instructions issued by the Reserve Bank of India regarding Know Your Customer norms of a bank's customer shall apply for buyers of the bonds.
(2)The authorised bank may call for any additional Know Your Customer documents, if it deems necessary.

5. Denomination.

- The bonds shall be issued in the denomination of Rs. 1000, Rs. 10,000, Rs. 1,00,000, Rs. 10,00,000 and Rs. 1,00,00,000.

6. Validity of Bond.

(1)The bond shall be valid for fifteen days from the date of issue and no payment shall be made to any payee political party if the bond is deposited after expiry of the validity period.
(2)The bond deposited by any political party to its account shall be credited on the same day.

7. Procedure for making application for purchase of bonds.

(1)Every buyer desirous of purchasing bond can apply with a physical or through online application in the format specified in Annexure II to this notification.
(2)Every application shall contain particulars as per the format in Annexure-II and shall be accompanied with the specified documents.
(3)On receipt of an application, the issuing branch shall issue the requisite bond, if all the requirements are fulfilled.
(4)The information furnished by the buyer shall be treated confidential by the authorised bank and shall not be disclosed to any authority for any purposes, except when demanded by a competent court or upon registration of criminal case by any law enforcement agency.
(5)A non-Know Your Customer compliant application or an application not meeting the requirements of the scheme shall be rejected.
(6)The bond shall be issued to the buyer on non-refundable basis.

8. Periodicity of issue of bonds.

(1)The bonds under this Scheme shall be available for purchase by any person for a period of ten days each in the months of January, April, July and October as may be specified by the Central Government.
(2)An additional period of thirty days shall be specified by the Central Government in the year of general elections to the House of People.

9. Interest.

- No interest shall be payable on the bond.

10. Issuing offices and commission payable.

- No commission, brokerage or any other charges for issue of bond shall be payable by the buyer against purchase of the bond.

11. Payment options.

(1)All payments for the issuance of the bond shall be accepted in Indian rupees, through demand draft or cheque or through Electronic Clearing System or direct debit to the buyer's account.
(2)Where payment is made through cheque or demand draft, the same shall be drawn in favour of the issuing bank at the place of issue such bond.

12. Encashment of the bond.

(1)The bond can be encashed only by an eligible political party by depositing the same in their designated bank account.
(2)The amount of bonds not encashed within the validity period of fifteen days shall be deposited by the authorised bank to the Prime Minister Relief Fund.

13. Tax treatment.

- The face value of the bonds shall be counted as income by way of voluntary contributions received by an eligible political party, for the purpose of exemption from Income-tax under section 13A of the Income tax Act, 1961.

14. Trading of bonds.

- The bonds shall not be eligible for trading.Annexure IName of Authorised Bank: State Bank of India[refer clause 2 (b)]List of Issuing Branches: [refer clause 2 (c)]
S.No. State Bcode Branch Name
1 Andhra Pradesh 952 Visakhapatnam
    948 Vijayawada
2 Andaman & Nicobar 156 Port Blair
3 Arunachal Pradesh 6091 Itanagar
4 Assam 78 Guwahati
5 Bihar 152 Patna Main Branch
6 Chandigarh 626 Chandigarh Main Branch
7 Chhatisgarh 461 Raipur
    336 Bilaspur
8 Dadar & Nagar Haveli 6586 Silvassa
9 Daman & Diu 514 Daman
10 Delhi 691 New Delhi Main Branch
11 Goa 509 Panaji
12 Gujarat 1355 Gandhi Nagar
    301 Ahmedabad
13 Haryana 645 New Colony Gurgaon
14 Himachal Pradesh 718 Shimla
15 Jammu& Kashmir 2295 Badami Bagh Br Srinagar
    657 Jammu
16 Jharkhand 167 Ranchi
17 Karnataka 813 Bangalore Main Branch
    846 Hubli
18 Kerala 941 Thiruvananthapuram Main
19 Lakshadweep 5080 Kavaratti
20 Madhya Pradesh 1308 Bhopal Main Branch
    377 Gwalior Main Branch
21 Maharashtra 300 Mumbai Main Branch
    432 Nagpur
    454 Pune Main Branch
22 Manipur 92 Imphal
23 Meghalaya 188 Shilong
24 Mizoram 1539 Aizawl
25 Nagaland 214 Kohima
26 Odisha 41 Bhubaneshwar
    59 Cuttack
27 Puducherry 900 Puducherry
28 Punjab 674 Ludhiana
29 Rajasthan 656 Jaipur Main Branch
    659 Jodhpur
30 Sikkim 232 Gangtok
31 Tamilnadu 800 Chennai Main Branch
    827 Coimbatore
32 Telangana 916 Secunderabad
    5324 Nizamabad
    847 Hyderabad Main Branch
33 Tripura 2 Agartala
34 Uttar Pradesh 125 Lucknow
    86 Gorakhpur
    102 Jhansi
    602 Agra Main Branch
35 Uttarakhand 630 Deharadun Main Branch
36 West Bengal 1 Kolkata Main Branch
    184 Siligudi
Annexure IIFormat Of Application For Issue Of Electoral Bond:
Application Form For Electoral Bonds___________(Year)
Name Of Issuing Bank: Name Of Branch:  
Date    
Modeof Subscription Cheque/DD Electronic Transfer
 
  Details Of Cheque/dd/ Dated
Amount In Figures: Amount In Words:  
Denomination & Number Of Electoral BondsRequired (In Denomination Of Rs. 1000, Rs. 10,000, Rs. 1,00,000,Rs. 10,00,000 And Rs. 1,00,00,000)    
Pan No. / Tan No.As Applicable    
Applicant Status (As Per Clause 3(A) f TheNotification No ....... Dated ............) Individual Huf Company Firm Charitable Trust Others
Applicant (S) Details (In Block Letters)
First/ Sole Applicant's Name In Full:
Details Of Identity: (Passport, Aadhaar/voterId)
Second Applicant's Name In Full:(Name Of More Applicant's Can Be Added, IfSituation So Demands)
Details Of Identity: (Passport, Aadhaar/voterId)
First / Sole Applicant's Address In Full:
Contact Details :Phone/ Fax:Email:
Declaration: I/ We hereby declare and undertakethat(i) The information furnished in the applicationform is correct in all respects.(ii) I have read and understood the details ofinformation for the buyer of the Electoral Bonds as well as therights and duties of the Electoral Bond holder.
Signature1st Appliant   Signature2nd Applicant
In Case Of Thumb Impression, Attestation By TwoWitnesses:
1st Witness (Details)   2nd Witness (Details)
Huf Decalaration :I, ____________________residing At The AddressGiven Against First Applicant, Do SolemnlyAffirm That I Am The Karta Of The Hindu Undivided Family AndAs Such Have FullPowers To Purchase And Other Wise Deal In The Electoral BondsStanding In The NameOf The Huf.Specimen Signature For And On Behalf Of The Huf (Name Of TheHuf):Place ___________Date_____________Signature of the Karta
For Office Use    
Date of receipt of application BLA No./ CIF No. HUF status(Y/N) Any other information
Information For Buyers of Electoral Bond:
Item Electoral Bond
Who can buy (1) The Bond underthis Scheme may be purchased by a person, who is a citizen ofIndia or incorporated or established in India.(2) A person being an individual can buy bonds,either singly or jointly with other individuals.
Limit of Investment None
Form of Electoral Bonds Non-refundable banking instrument, in physicalform
Interest Option No interest shall be payable
Life of Electoral Bond To be encashed within fifteen days from dateof issuance.
Tradability Not tradable.
Loans From Banks Against Security of theseElectoral Bonds Not permitted.
Application Forms Available at designated branches of authorisedBanks.
Encashment Only the political parties registered undersection 29A of the Representation of the People Act, 1951 (43 of1951) and secured not less than one per cent of the votes polledin the last general election to the House of the People or theLegislative Assembly, as the case may be, shall be eligible toreceive the bond.