The 13th phase of electoral bonds were sold in January 2020. More than ₹ 80 crore worth bonds were sold during this phase. Here is a detailed analysis of the electoral bonds sold in January 2020.
The 13th phase of the sale of Electoral Bonds under Electoral Bond Scheme-2018, took place during 13-22 January 2020. The Government of India made an announcement to this effect on 09 January 2020. The State Bank of India main Branches of 29 cities across the country were authorized for the sale of the Electoral Bonds. This is the first sale cycle of Electoral Bonds for the year 2020.
Total worth of bonds purchased less than the previous phase
A total of ₹ 81.67 crores worth of Electoral Bonds was purchased in the 13th phase. This is significantly lower that the Electoral Bonds purchased in the previous phase i.e. 12th phase during 01 October to 10 October 2019. During that phase ₹ 231.93 crores worth of bonds were purchased. The 13th phase is the third from last in terms of the amount purchased. Only the amount of bonds purchased in the 4th & 11th phase was less than the amount in the 13th phase.
Highest purchases made were of ₹1 crore Denomination
As explained previously by Factly, Electoral Bonds are available in 5 denominations – ₹ 1 thousand, 10 thousand, 1 lakh, 10 lakhs & 1 crores.
The ₹ 81.67 crores worth of electoral bonds purchased in January 2020 were through the purchase of 139 Electoral bonds. There were no purchases made for the bonds of lower denomination i.e. ₹ 1 thousand & ₹10 thousand. A total of 27 bonds of ₹ 1 Lakh and 34 of ₹ 10 lakh denomination were purchased. More than half of the total bonds purchased i.e. 78 electoral bonds were of ₹1 crore denomination.
In January 2020, highest purchase of Electoral Bonds in New Delhi
In this phase, the purchase of electoral bonds was made in SBI Main Branches of only 7 cities out of the authorized 29 cities. The highest total value of purchases was in New Delhi where ₹ 22.05 crores worth Electoral Bonds were purchased from SBI’s New Delhi Main Branch.
This is followed by Lucknow and Kolkata where ₹ 20 crores and ₹15.37 crores worth bonds were purchased respectively. Mumbai, which otherwise records the highest amount reported purchases of only ₹13 crores in January 2020. Bhubaneshwar, Jaipur and Gandhinagar are the remaining cities, where the electoral bond purchases were made. Bonds worth ₹ 7 crores, ₹ 3.25 crore and ₹1 crore respectively were purchased in these cities.
Electoral Bonds redeemed in only 3 cities
While the purchases were made in 7 cities, the bonds were redeemed in only three cities – New Delhi, Kolkata and Bhubaneshwar.
- Lion’s share of these bonds were redeemed in New Delhi. A total of 89 bonds worth ₹ 59.3 crores i.e. nearly 73 % were redeemed here. 57 of these bonds were of ₹ 1 crore denomination while bonds of ₹10 lakhs & ₹1 Lakh denominations were 22 and 10 respectively.
- In Kolkata, 40 bonds worth ₹12.37 crores were redeemed. Of these, 11 bonds were of ₹ 1 crore denomination, 12 were of ₹ 10 lakh denomination and the remaining 17 were of ₹1 lakh denomination.
- 10 bonds worth ₹ 10 crores were redeemed in Bhubaneshwar. All these bonds were of ₹ 1 crore denomination.
All the bonds purchased in January 2020 were redeemed
For the third successive phase, all the electoral Bonds purchased were redeemed by the political parties.
As per the guidelines, the electoral bonds need to be redeemed within fifteen days of the purchase. Any electoral bond that are is not redeemed within this period is credited to Prime Minister National Relief Fund (PMNRF).
Over the 13 phases, there are 5 such phases where in all the electoral bonds have been redeemed by the political parties within the stipulated time. The highest unredeemed amount was in the 3rd phase (May’2018) where in 10 bonds worth ₹ 10 crores were not redeemed. The highest number of bonds was in 9th phase i.e. during April’2019 where in 74 bonds worth ₹ 5.05 crore was not redeemed, and the amount was transferred to PMNRF.
Lower purchases due to single election
The only election that took place closer to the 13th phase was the Delhi Assembly elections. The lower volume of electoral bonds purchased during January 2020 could be because of this reason. During earlier phases, either the Lok Sabha general election was scheduled or some of the bigger states went to polls.
New Delhi, where most of the Political parties especially the National parties have their Bank account is traditionally the city where highest amount of electoral bonds is redeemed. Since the Assembly elections were also held in Delhi, majority of the electoral bonds were redeemed here.
Furthermore, the beneficiaries of this phase of electoral bonds will only be known after the political parties submit their financial statements for 2019-20, during the latter part of year. Factly has earlier written a story explaining how people have to wait for a long period of time to know about the beneficiaries of electoral bonds.