How can you donate to a political party in India?

An individual can donate to a political party up to Rs.2000. Values greater than that have to donate only with electoral bonds.
Here is the List of How can you donate to a political party in India?

How can you donate to a political party in India?

Introduction to Electoral bonds:

Electoral bonds are non-recoverable debt mechanism. It is used as a banking instrument for funding parties. The parties are eligible if they secure at least 1% of the votes polled in Lok Sabha elections.

Investors’ eligibility:

Any Indian citizen or trust can purchase the electoral bonds. These are rupee-denominated bonds and issued with the face value of Rs.1000 and multiples.

Role of SBI:

The State Bank of India (SBI) is the only issuing authority in the country. One has to buy the bonds only from the SBI and not from any other organization.

Function of the scheme:

Both, the beneficiaries and benefactors should have an account with the SBI. The donor has to pay the money directly into his account and transfer it to the recipient’s account. The transfer has to be done within 15 days of the issue.

What if the donor doesn’t have an account with the SBI?

If one does not have the account, he or she can pay the bank directly. The remaining procedure remains the same as mentioned above.


The problem with the electoral bond is that the identity of donor and receiver is protected. The electoral bonds do not carry the names of the donor and the receiving political party.

The SBI clearly states that the KYC norms are applicable for electoral bonds.
The additional information required in the later stage can be asked.
Financial experts argue that this will not help protect donors’ identity.
The Central Government agencies like Enforcement Directorate and Income Tax Department can ask a donor for the details.

Recently, the maximum limit of 7.5% for the bonds has been eliminated. This makes the outsiders worry a lot since there might be a flow of huge black money in donating.

Who is the biggest beneficiary?

The report says that the BJP is the biggest beneficiary in the country. The Ambanis, Adanis, Birlas are backing BJP a lot, the report adds.

The volume of money mobilized:

There is no official report on the total money invested in electoral bonds. But rumors are that SBI sold Rs. 1,716 crore in January and March this year. But the total estimation of the currently held elections is approximately Rs. 30,000 crore.