Dear Sir,
We need to have your advice about whether, we, as an NGO, Could be allowed for a limited period, under the recent De-Monetizing move of the existing currency of Rs.500 and Rs.1000 by the Govt. of India.
We, as an NGO, in the Chattisgarh state, keep receiving the membership fee, etc. from various districts of the state, as per the declaration mentioned in our bye-laws. Now, as, the membership fee amount had already been collected by our volunteers in different districts of the Chhattisgarh State which consists of considerably huge numbers of Rs.500 and Rs.1000 currency, which has recently been de-monetized by the Govt. of India.
Anyway, we, as an NGO with the network in all the districts of the Chhattisgarh-state, along with all our board members, designatories, volunteers and beneficiaries, welcome and support the move.
Now, The problem with us, as an NGO, is related to the information & knowledge, about the legality of making deposit into the bank. Please let us know, whether, we could deposit the money, received as the membership fee from our female-beneficiary-members, mentioning the receipt numbers with date of receipt; and also could we seek formal-permission by our Banker or RBI, regarding the issue, mentioning the limit of the total deposits, to be made during the permitted-period, like December 30th 2016.
Seeking your authentic advice in this matter, urgently…….
Thanks…
—
With Regards,
Tapash Chatterjee
Secretary & CEO
MITAAN SEWA SAMITI [NGO]
MITAAN EMPOWERMENT FOUNDATION [NPO]
Near Shiv Mandir, Hardware Line,
Supela, BHILAI–490023,
Chhattisgarh, India
You can very well request your Bankers confirming that, the amount being deposited is the amount withdrawn from the FCRA Account and because of demonitization it is being re-deposited. They can very well accept the amount and credit the same to FCRA Account.
We can re-deposit the Cash withdrawn from a FCRA Account by providing a letter printed on NGO letterhead mentioning the reason of re-depositing the amount along with the date on which the cash was withdrawn. In this case the bank will have the back up paper for accepting the cash.
In my view, the cash in the hands of “volunteers” is cash held-in-trust. Hence, although this cash was physically not in the possession of your NGO, as of midnight on 8-Nov-16, it is still deemed as cash balance of your NGO. Also, there is no limit on deposit of old denomination currencies. Hence, I would suggest to go ahead and deposit the cash. However, care should be taken to keep all backup papers, that may be necessary, to jusify that your volunteers indeed had collected these currencies on or before 8-Nov-16. This is the stand I have taken for the NGO with which I am currently associated.
Transaction if made in ordinary course of work and similar to volume of membership received in past in a particular day and the custom /tradition used previously to deposit this in Bank.means in a gap of how many days from the date of receipt will justify your receipts of money of membership till the 8th of November even if received and kept in denominations of 500 and 1000. CA Deepa Gupta
You can deposit as Membership Fees received from Members giving details of the Members and their PAN numbers/copy.
As per the notification demonetising the currency notes of Rs. 500 and Rs. 1000 denominations, the said notes have ceased to be legal tenders w.e.f. 12 am of 9th November. Any notes collected before that period in the normal course of business or otherwise can be deposited in the bank up to 30th December without any hassel. In case of any enquiry the depositor should be able to justify that the said notes were received before it ceased to be legal tender. There is not need to seek any permission from RBI or any other authority.
Thanks For Your Reply…
We Might Proceed As Per Your Advice…
Sab ngo ko distribute kar dijiye
Dear list members,
Our organization has cash in hand withdrawn for projects from our local grant and FCRA accounts which has suddenly been rendered valueless by the demonetization of Rs.500 and Rs.1000 currency denominations. We would like to recredit the amounts to the respective accounts so that we may then withdraw the amounts in legal currency for use – except that HDFC Bank says credit of cash locally to the FCRA account is not allowed! Solutions? Does anyone have any experience of crediting cash amounts to their FCRA accounts?
Warm regards,
Ramakrishnan