The government has amended the Electoral Bond Scheme, 2018. The Ministry of Finance on November 7, 2022, issued a notification for amending the scheme to provide “an additional period of 15 days” for their sale “in the year of general elections to the Legislative Assembly of any States or Union Territories with Legislature”. The bonds under this scheme are usually made available for purchase by any person for a period of ten days each in the months of January, April, July, and October, when specified by the Union Government. The original scheme had provided for an additional period of thirty days, as specified by the Government, in the year when Lok Sabha elections are held, while the amendment adds another 15 days.

Since Assembly elections to various States and Union Territories are held every year, the amendment effectively means that there will be 15 additional dates annually during which the bonds can be sold. Immediately after issuing the notification, the Union Government also announced the sale of electoral bonds under the 23rd tranche from the 9th to 15th of November 2022.

The notification said the sale of bonds would take place through the 29 authorised branches of the State Bank of India. The notification said the sale of bonds would take place through the 29 authorised branches of the said bank from November 9 to November 15, 2022. Like in previous rounds of sale, the electoral bonds shall be valid for 15 calendar days from the date of issue and no payment shall be made to any payee political party if the bond is deposited after expiry of the validity period. The Electoral Bond deposited by an eligible political party in its account shall be credited on the same day.

[Extracted, with edits and revisions, from “Electoral Bonds Scheme Amended To Allow Sale for Additional 15 Days in Assembly Election Years”, by Gaurav Vivek Bhatnagar,The Wire]

Abraham, who lives in a different State from Assad, purchased an electoral bond in the sale of the 23rd tranche. He decides to give the electoral bond to the PPP, even though the PPP is only active in Assad’s State. When the PPP representative goes to an authorised branch of the State Bank of India to deposit the electoral bond on December 5, 2022 however, the bank refuses to credit the money to the party’s account. Which of the following would be the most valid reason for the bank to refuse to credit the money to the party’s account?