Explanation:

Only statements 2&3 are incorrect.
An election security deposit is an amount that is to be deposited with the Returning Officer when a candidate files their nomination.

• This is to be submitted either in cash, or a receipt must be enclosed with the nomination paper, showing that the said sum has been deposited on the candidate’s behalf in the Reserve Bank of India or in a Government Treasury.

• The main purpose of this practice is to ensure that only genuinely intending candidates end up filing the nomination to be a part of the electoral process.

Is the amount same for all elections?

• No, it depends on the particular election being conducted, and the Representation of the People Act of 1951 mentions different amounts depending on the level of election.

When is a candidate said to ‘lose’ their security deposit?

• As per the same Act, the deposit has to be forfeited at an election if the number of valid votes polled by the candidate is less than 1/6th of the total number of valid votes polled.

• Or, in the case of the election of more than one member, it would be 1/6th of the total number of valid votes so polled divided by the number of members to be elected.