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MINISTRY OF FINANCE

(Department of Economic Affairs)

NOTIFICATION

New Delhi, the 2nd January, 2018

S.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.

  • Definition.– In this Scheme, unless the context otherwise requires, ––
  • 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;
  • authorized bank” means the State Bank of India authorized to issue and Ancash the bonds in the branches specified in Annexure I to this notification;
  • issuing branch” means a designated branch of the authorized bank specified in Annexure I for issuing electoral bonds;
  • person” includes-
    • an individual;
  • a Hindu undivided family;
    • a company;
    • a firm;
    • an association of persons or a body of individuals, whether incorporated or not;
    • every artificial juridical person, not falling within any of the preceding sub-clauses; and
    • any agency, office or branch owned or controlled by such person.
  • 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.
  • A person being an individual can buy 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 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.
  • The bond shall be enchased by an eligible political party only through a bank account with the authorized bank.
  • 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 authorized bank may call for any additional Know Your Customer documents, if it deems necessary.

  • Denomination.–The bonds shall be issued in the denomination of ` 1000, ` 10,000, ` 1,00,000, ` 10,00,000 and

`1,00,00,000.

  • 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.

  • Procedure for making application for purchase of bonds.– (1) Every buyer desirous of purchasing bond can apply with a physical or through online applicational the format specified in Annexure II to this notification.
  • Every application shall contain particulars as per the format in Annexure-II and shall be accompanied with the specified documents.
  • On receipt of an application, the issuing branch shall issue the requisite bond, if all the requirements are fulfilled.
  • The information furnished by the buyer shall be treated confidential by the authorized 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.
  • A non-Know Your Customer compliant application or an application not meeting the requirements of the scheme shall be rejected.
  • The bond shall be issued to the buyer on non-refundable basis.
  • 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.

  • Interest.––No interest shall be payable on the bond.
  • 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.
  • 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 favor of the issuing bank at the place of issue such bond.

  1. 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.

  1. 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.
  2. Trading of bonds.––The bonds shall not be eligible for trading.

Annexure I

Name of Authorised Bank: STATE BANK OF INDIA [refer clause 2 (b)]

List of Issuing Branches: [refer clause 2 (c)]

S.NO.STATEBCODEBRANCH NAME
1ANDHRA PRADESH952VISAKHAPATNAM
  948VIJAYAWADA
2ANDAMAN & NICOBAR156PORT BLAIR
3ARUNACHAL PRADESH6091ITANAGAR
4ASSAM78GUWAHATI
5BIHAR152PATNA MAIN BRANCH
6CHANDIGARH626CHANDIGARH MAIN BRANCH
7CHHATISGARH461RAIPUR
  336BILASPUR
8DADAR & NAGAR HAVELI6586SILVASSA
9DAMAN & DIU514DAMAN
10DELHI691NEW DELHI MAIN BRANCH
11GOA509PANAJI
12GUJARAT1355GANDHI NAGAR
  301AHMEDABAD
13HARYANA645NEW COLONY GURGAON
14HIMACHAL PRADESH718SHIMLA
15JAMMU& KASHMIR2295BADAMI BAGH BR SRINAGAR
  657JAMMU
16JHARKHAND167RANCHI
17KARNATAKA813BANGALORE MAIN BRANCH
  846HUBLI
18KERALA941THIRUVANANTHAPURAM MAIN
19LAKSHADWEEP5080KAVARATTI
20MADHYA PRADESH1308BHOPAL MAIN BRANCH
  377GWALIOR MAIN BRANCH
21MAHARASHTRA300MUMBAI MAIN BRANCH
  432NAGPUR
  454PUNE MAIN BRANCH
22MANIPUR92IMPHAL
23MEGHALAYA188SHILONG
24MIZORAM1539AIZAWL
25NAGALAND214KOHIMA
26ODISHA41BHUBANESHWAR
  59CUTTACK
27PUDUCHERRY900PUDUCHERRY
28PUNJAB674LUDHIANA
29RAJASTHAN656JAIPUR MAIN BRANCH
  659JODHPUR
30SIKKIM232GANGTOK
31TAMILNADU800CHENNAI MAIN BRANCH
  827COIMBATORE
32TELANGANA916SECUNDERABAD
  5324NIZAMABAD
  847HYDERABAD MAIN BRANCH
33TRIPURA2AGARTALA
34UTTAR PRADESH125LUCKNOW
  86GORAKHPUR
  102JHANSI
  602AGRA MAIN BRANCH
35UTTARAKHAND630DEHARADUN MAIN BRANCH
36WEST BENGAL1KOLKATA MAIN BRANCH
  184SILIGUDI

Annexure II

Format of Application for Issue of Electoral Bond:

APPLICATION FORM FOR ELECTORAL BONDS                         (YEAR)
NAME OF ISSUING BANK:                                   NAME OF BRANCH:
DATE
MODE OF SUBSCRIPTION                         CHEQUE/DD                          ELECTRONIC TRANSFER
 
 DETAILS OF CHEQUE/DD/DATED
AMOUNT IN FIGURES:AMOUNT IN WORDS: 
DENOMINATION & NUMBER OF ELECTORAL  BONDS  REQUIRED  (in denomination        of       `1000,       `10,000, `1,00,000, `10,00,000 and `1,00,00,000)  
PAN NO. / TAN NO.AS APPLICABLE  
APPLICANT STATUS (As per clause 3(a) of the notification No……. dated……………. )INDIVIDUALHUFCOMPANYFIRMCHARITABLE TRUSTOthers
APPLICANT (S) DETAILS (IN BLOCK LETTERS)
FIRST/ SOLE APPLICANT’S NAME IN FULL:
DETAILS OF IDENTITY: (Passport, Aadhaar/Voter Id)
SECOND APPLICANT’S NAME IN FULL:     (Name of more applicant’s can be added, if situation so demands)
DETAILS OF IDENTITY: (Passport, Aadhaar/Voter Id)
FIRST / SOLE APPLICANT’S ADDRESS IN FULL:
 
CONTACT DETAILS :     PHONE/ FAX: EMAIL:
DECLARATION: I/ We hereby declare and undertake that The information furnished in the application form is correct in all respects.I have read and understood the details of information for the buyer of the ElectoralBonds as well as the rights and duties of the Electoral Bond holder.
Signature                                                                                                                  Signature     1st APPLIANT                                                                                                             2nd APPLICANT
IN CASE OF THUMB IMPRESSION, ATTESTATION BY TWO WITNESSES:               1ST WITNESS (DETAILS)                                                                                      2ND WITNESS (DETAILS)
HUF DECALARATION :     I,                                           RESIDING AT THE ADDRESS GIVEN AGAINST FIRST APPLICANT, DO SOLEMNLY AFFIRM THAT I AM THE KARTA OF THE HINDU UNDIVIDED FAMILY AND AS SUCH HAVE FULL POWERS TO PURCHASE AND OTHER WISE DEAL IN THE ELECTORAL BONDS STANDING IN THE NAME OF THE HUF.       SPECIMEN SIGNATURE FOR AND ON BEHALF OF THE HUF (Name of the HUF):       Place                       _     Date                          _                                                                         Signature of the Karta
FOR OFFICE USE
Date of receipt of applicationBLA No./ CIF No.HUF status (Y/N)Any other information

INFORMATION FOR BUYERS OF ELECTORAL BOND:

ITEMELECTORAL BOND
WHO CAN BUYThe Bond under this Scheme 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 bonds, either singly or jointly with other individuals.
LIMIT OF INVESTMENTNone
FORM OF ELECTORAL BONDSNon-refundable banking instrument, in physical form
INTEREST OPTIONNo interest shall be payable
LIFE OF ELECTORAL BONDTo be encashed within fifteen days from date of issuance.
TRADABILITYNot tradable.
LOANS FROM BANKS AGAINST SECURITY             OF             THESE ELECTORAL BONDSNot permitted.
APPLICATION FORMSAvailable at designated branches of authorized Banks.
ENCASHMENTOnly 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.

[F. No. 4(23)-B(W&M)/2017]

PRASHANT GOYAL, Jt. Secy.

RAKESH SUKUL

Digitally signed by RAKESH SUKUL

Date: 2018.01.03 21:26:42

+05’30’

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