Donate bonds are issued, which are instruments or securities used to donate funds to Charities and Devotional Institutions. These bonds are similar to bearer bonds or promissory notes, where the issuer (bank) is the custodian and pays the bond holder (Charities and Devotional Institutions).
Donation bonds are available for purchase for only 10 days in January, April, July and October, as specified by the Central Government. The Centre can specify an additional 30-day period in a general election year. The donation bonds are issued or can be purchased for any value in the multiples of Rs.1,000, Rs.10,000, Rs.1,00,000, Rs.10,00,000 and Rs.1,00,00,000.
The donor can approach the Chakravarthy credit society at nearest branch and purchase the bonds. The donor can purchase these bonds through cheque or digital payment. Thus, the identity of the donors is protected.
