Dear Sir/Mam.
We have NGO. We have been working in rural area since the last 3 decades with foreign donation. I assume that I we will not be able to spend whole amount deposited in BOI Branch till 31st March 2021. We have to open news FC account in SBI Delhi. I like to know what I have to do with money remaining unspent after 31st March 2021.Is it compulsory to spend all money from the old account within 31st March, 2021?
Please let me know soon.
Regards.
Samir Kr. Halder
Dear Subhash Mittal,
Thanks for enlighten us about how to utilize the FC account. However, when the FD is mature and the organization does not have an FC account as not opened or number not renewed, what would be its status?
If you are registered under FCRA, then you must have had FCRA Bank A/c. In case now you have not been able to open FCRA A/c in SBI Parliament Street, till 31st March you can still get the proceeds of FD transferred to your earlier designated account. Although after 31st March it will create a problem, as you cannot transfer this fund to any other bank account.
Is the old FC account should be valid as utilisation account after 31March.
Kindly give light on this
Vikas Bhardwaj
Daang Vikas Sansthan Karauli Rajasthan
When filing your FC6C, you can declare the earlier designated account as ‘Another FCRA A/c’. This will help you not to transfer the earlier funds to FCRA or any account. You can create FDs out of this account and also use it as Utilisation Account.
Thank you Soma for wonderfully explaining the clause. I have nothing to add on this aspect. However my concern is relating to delay in filing of Renewal application.
FCRA has now mandated that renewal applications should be filed only after opening of SBI A/c in NDMB, Parliament Street. Please ensure that your renewal application is not delayed, as consequences of delayed renewal application is very heavy. It would mean that FCRA registration ceases, once renewal application is not filed before renewal date. Implications of having FCRA registration being ceased is that you cannot receive or utilise FCRA funds, after this date.
SO PLEASE TAKE CARE AND ENSURE YOUR RENEWAL APPLICATION IS FILED BEFORE EXPIRY.
Dear Samir,
All the charitable organizations registered under FCRA have to mandatorily open the SBI bank account by 31st March 2021 so as to receive fresh FC contributions. After 31st March 2021, there is restriction on the receipt of FC funds in the old designated bank account of the organization. The organization can continue using the funds for the erstwhile designated bank account till the funds are exhausted.
Even if we have an already opened account in SBI, it is mandated to open another bank account for the receipt of FC in the designated branch of SBI. The new SBI account is only meant for the inward remittance of FC. Upon receipt of the funds in the designated SBI account, the amount can be further transferred to any of the valid utilization accounts of the organization.
Thanks and regards,
B V Soma Sastry