The State Bank of India (SBI), a government-owned entity, has reportedly received ₹10.68 crore from the Ministry of Finance to facilitate the sale and redemption of electoral bonds, as per a recent report by The Indian Express. This allocation was intended to cover various expenses incurred by the bank during the electoral bond process, including bank charges, transaction fees, and associated GST.

The issuance and redemption of electoral bonds spanned across 30 phases between 2018 and 2024. Throughout this period, SBI levied commission and fees for its services. The report highlights that the bank consistently followed up with the ministry for timely payment of dues.

During the ninth phase, which coincided with the run-up to the 2019 Lok Sabha elections, SBI recorded the highest commission amounting to ₹1.25 crore. This phase witnessed the sale of 4,607 electoral bonds, indicating heightened political activity during that period. Conversely, the lowest commission of ₹1.82 lakh was recorded during the fourth phase, which saw the redemption of 82 electoral bonds.

Furthermore, SBI disclosed the value of unredeemed bonds for each phase, which were subsequently allocated to the Prime Minister’s Relief Fund. The bank also raised concerns regarding erroneous printing of bonds. Notably, in March 2021, an SBI branch reported receiving 94 electoral bonds with serial numbers visible to the naked eye, contrary to the intended design specifications.

Anticipating increased demand for electoral bonds ahead of the 2019 Lok Sabha elections, SBI informed the government of the need to bolster the existing stock. This proactive approach aimed to ensure seamless facilitation of political funding during crucial electoral periods.

Data released by the Election Commission reveals that political parties redeemed electoral bonds worth ₹12145.87 crore, with the Bharatiya Janata Party (BJP) accounting for a significant portion exceeding ₹6,000 crore. The Indian National Congress (INC) received approximately ₹1,351 crore, while the Trinamool Congress secured ₹1,592 crore, reflecting diverse participation in the electoral bond mechanism.

The revelations underscore the financial dynamics and operational intricacies involved in the electoral bond system, shedding light on its impact on political funding and transparency in India’s democratic processes.