RBI had no objection to issuance of electoral bonds through SBI, says FM

She said the Committee of the Central Board (CCB) of RBI in its meeting held on October 11, 2017 indirectly agreed for electoral bonds to be issued if it is done by the SBI.

Finance Minister Nirmala Sitharaman on Tuesday said in Rajya Sabha that the RBI had no objection to issuance of electoral bonds through the State Bank of India (SBI). Replying to a supplementary during the Question Hour on electoral bonds through the SBI, the Finance Minister said the Reserve Bank of India (RBI) being a stakeholder was involved in extensive consultations with the government at the stage of conceptualisation. “During the consultation process they had questions about the particular platform for its issuance as to who is going to issue. And also the proforma with which it is going to be issued.

“These consultations were recorded but at the end of it as long as the bonds were going to be issued by the SBI, they did not have any objection,” Nirmala Sitharaman said. She said the Committee of the Central Board (CCB) of RBI in its meeting held on October 11, 2017 indirectly agreed for electoral bonds to be issued if it is done by the SBI. The Bank in the CCB meeting and other internal fora would have discussed the multiple facets of the Electoral Bonds schemes.

She said the proceedings of CCB mention that “the CCB supported the Bank’s stand on not issuing the EBs in scrip form and observed that if the Government decides to issue EB in scrip form through SBI, the Bank should let it be.” The main reasons for issuing EBs in bearer form are to bring in transparency to funding in the political system, she said…