The electoral bonds scheme, announced by the Narendra Modi government in 2017, has attracted vehement criticism from activists and opposition parties who alleged the scheme legalised corrupt donations. The Modi government's defence of the scheme has not been helped by the fact that the BJP has been the single-largest recipient of electoral bonds. In 2018-19, the BJP raised Rs 1,450 crore from donations via electoral bonds. The Congress was a distant second, raising Rs 383 crore via electoral bonds.

So far, 12 rounds of sales of electoral bonds have been held since March 2018. On Thursday HuffPost India reported that the 'associated' costs of electoral bonds—such as bank fees, commissions, transaction costs and printing charges—were being paid not by the donors, who remain anonymous, or political parties, but by taxpayers, via the Consolidated Fund of India.

Since November 2019, HuffPost India has published a series of analytical reports on electoral bonds and how the Modi government had ignored objections on implementing the scheme.

In Thursday's report, HuffPost India accessed replies to RTI queries, finance ministry file notings and other documents.

HuffPost India reported "By the end of 10 of the 12 rounds of sales of electoral bonds (March 2018 to May 2019), SBI had presented the government with a bill of Rs 3.24 crore." According to RTI queries, electoral bonds worth Rs 5,832 crore were sold in these first 10 rounds.

Explaining the charges, HuffPost India reported, "The SBI charges the government Rs 5.5 for each Rs 1,000 worth of electoral bonds sold. It also charges the government an additional Rs 12 per transaction for digital bonds and Rs 50 for purchase of physically held bonds." In addition, the Indian Security Press at Nashik charges Rs 25 for every electoral bond, which is printed with secret numbers and "special security features". According to HuffPost India, by October 2018, the printing facility had billed the finance ministry Rs 1.67 crore for printing of electoral bonds.

HuffPost India revealed an email from G. Ravindranath, a chief general manager of SBI's Global Markets division, on December 7, 2017 that stated the government notification on electoral bonds should mention that the Central government would reimburse banks or the 'banking fees' be recovered from the donor purchasing the bonds.

However, SBI's request was not heeded. HuffPost India reported, "The final version of the rules did not mention that neither donors nor political parties would pay for the cost of running the scheme. The rules also did not say that the government would pay the bank from the public exchequer.”