What SOPs does SBI follow for electoral bonds? You aren't supposed to know

India’s largest public-sector lender follows standard operating procedures (SOPs) for sale and redemption of electoral bonds. This set rules were issued by the bank to all of its branches in April 2017 and have been followed ever since. However, the content of the SOP remains shrouded in secrecy.

Transparency activist Anjali Bhardwaj had initially, on March 4, appealed the SBI to provide a copy of the SOPs on the sale and redemption of electoral bonds under the Right to Information (RTI) Act. She was, however, denied this information on March 30.

The SBI justified the denial, saying it held the details sought in “commercial confidence”. The lender said that the information was the “intellectual property of the bank”. It further said that the internal guidelines were strictly meant for the staff dealing with sale and redemption of electoral bonds.

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After this refusal by the bank, Bhardwaj made an appeal to the first appellate authority (FAA) of SBI. Her attempt to bring this information to the public arena was once thwarted on May 17, when the FAA said: “The information sought is held by the bank in its commercial confidence and hence cannot be provided.”

“Further, the internal guidelines are strictly meant for the dealing staff and the information is also intellectual property of the bank, hence rightly denied under Section 8(1)(d) of the RTI Act which states ‘Information, including commercial confidence, trade secrets or intellectual property, the disclosure of which would harm the competitive position of a third party, unless the competent authority is satisfied that larger public interest warrants the disclosure of such information’,” FAA said.

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Dissatisfied with the response she got from FAA, Bhardwaj now plans to appeal in the Central Information Commission (CIC) against the denial.

Why is she seeking SOPs on electoral bonds from SBI?

According to a report by the Economic Times Bhardwaj said she has been seeking SOPs on electoral bonds claiming that there has been lack of clarity over the manner in which SBI maintained data on transactions through the bonds. She further said the SOPs may also help know the tracking of the bonds as recorded with the unique number both on the purchaser and redeemer side.

“Even after the Supreme Court struck down the electoral bond scheme as being unconstitutional and ordered disclosure of all details of EBs, SBI continues to withhold crucial information,” she said.

A five-judge Constitution Bench of the apex court, on February 15, 2024, unanimously struck down the Centre’s electoral bond scheme as unconstitutional and violative of the “right to information of voters” due to their anonymity.

The SBI was asked to immediately stop issuing such bonds and provide complete details on those issued since 2019.

Bhardwaj said though FAA has denied providing details, it has failed to demonstrate how disclosure of SOPs would ‘harm the competitive position of a third party’ and has also not disclosed who is the third party in the matter.

“Further, the FAA has not weighed public interest in the matter and has blandly cited the document being an internal guideline to justify denial, even though there is no such exemption clause in the RTI Act,” she added.

It now remains to be seen if the CIC looks favourably upon Bhardwaj’s appeal.