Electoral bonds are “bearer” instruments in the nature of a promissory note (a written promise by one entity to another) and an interest-free banking instrument.
An Indian citizen was eligible to purchase such bonds available in multiples of ₹1,000, ₹10,000, ₹1,00,000, ₹10,00,000 and ₹1,00,00,000 from specified branches of the State Bank of India.
According to the scheme, a purchaser was allowed to buy electoral bonds only after due fulfilment of all Know Your Customer (KYC) norms and by making payment from a bank account.
Source: Barandbench
