What is an electoral Bond?

• Electoral bonds are instruments/securities that are used to donate funds to political parties. Electoral Bonds may be purchased by a person who is a citizen of India or incorporated or established in India. 
• A person being an individual can buy Electoral Bonds, either singly or jointly with other individuals. 
• 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, shall be eligible to receive the Electoral Bonds. 
• The Electoral Bonds shall be encashed by an eligible Political Party only through a Bank account with the Authorized Bank.
• State Bank of India has been authorised to issue and encash Electoral Bonds through its 29 Authorized Branches.
• The bond 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 the expiry of the validity period. 
• The Electoral Bond deposited by an eligible Political Party in its account shall be credited on the same day.
• Electoral bond would be issued/purchased for any value, in multiples of `1,000, `10,000, `1,00,000, `10,00,000 and `1,00,00,000 from the specified branches of the State Bank of India (SBI).

Further Reading:

• Electoral Bonds
• Electoral Reforms in India