The sixth phase of the sale of electoral bonds will begin from Thursday which will continue till November 10.
Electoral bonds are being pitched as an alternative to cash donations made to political parties.
The scheme is a part of efforts to bring transparency in political funding.
The Finance Ministry said, State Bank of India has been authorised to issue and encash Electoral Bonds through its 29 authorised branches across the country.
The Electoral Bonds will be valid for 15 calendar days from the date of issue.
No payment shall be made to any payee Political Party if the Electoral 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.
As per provisions of the scheme, electoral bonds may be purchased by a person, who is a citizen of India or entities incorporated or established in India.
Registered political parties that have secured not less than one per cent of the votes polled in the last election to the Lok Sabha or legislative assembly will be eligible to receive electoral bonds.