Respected Sir,
I draw your kind attention towards query we have faced regarding FCRA Project Account.As per the new act organization should open a multiple account under main fcra designated bank account to utilise fc money for relevant project and within 15 days organization have to intimate MHA (FCRA devision) for opening a new bank account but we have not received any correspondence regarding this account from MHA. Now query We received Fc fund in our Main FC account and than transfer money to our project account. and from project account we transfer money to our partner who have FCRA registration and they have to show this money in their FC Designated bank account first and than they transfer that amount to their project account but one of our partner received complain from their bank that the amount receive in his account must be from Fc Designated bank account only. So there is any clause regarding this issue to solve the problem.
Regards,
Bhavesh Soni
Sahjeevan
175, Jalaram Society,
B/h. Vishwamangal Appt.
Vijay Nagar,
Bhuj 370 001. Kutch
TRANSFER OF FUNDS TO OTHER NGOs THROUGH UTILIZATION BANK ACCOUNTS
We refer to the query raised by Bhuvnesh Soni of Sahjeevan about, if funds can be transferred to other FCRA registered entities from Utilization Accounts. One of the problem he is facing is that when he wants to transfer funds to other registered entities out of Utilization Account, the banker of the entity to whom funds are being transferred has raised objections that these funds are from local bank account and not from FCRA bank account.
Opening of more than one bank account has been covered by S. 17 (1), particularly the first proviso, which states ‘that such person may open one or more accounts in one or more banks for utilizing the foreign contribution received by him’. There are no specific rules covering these provisions.
While on the face of it there is no specific provision, if funds can be transferred to other registered entities (covered under Rule 24(2)) out of utilization accounts. However if one reads the S.17(1) first proviso carefully, it states that the account can be opened ‘for utilizing the foreign contribution receive by him’. Since transfer of funds to other agencies cannot be treated as utilization, this is likely to be shown as Utilization in the FC6 of the registered agency to whose account funds are further transferred, therefore one interpretation would be that transfer of funds should be only from designated bank account.
In any case, rather than making the issue a legal one, it would be better to solve it at a practical level. Hence it is suggested that funds to be transferred to other entities for further utilization, should be done through the designated FCRA bank account.
__________________________________
Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail: socio-research@sma.net.in
From new FCRA law I understand that ,Opening of new account for those who are implementing the projects, From this account you can’t trf the money to other FCRA account holder.
If you are funding partner you can trf the money to your partner from the main FCRA account.
Money can trf one FCRA account to another FCRA account only from the main FCRA account.
Multiple account open only for utilization purpose only.
Dear All,
Greetings from Hyderabad!
Thanks and regards,
_____________________________________
B V Soma Sastry
Director – Finance and Admin
Centre for World Solidarity
12-13-438, Street No. 1, Tarnaka
Secunderabad 500 017
Andhra Pradesh
http://www.cwsy.org