Can we receive Indian Currency through Western Union in FCRA bank A/c?

5 Responses to Can we receive Indian Currency through Western Union in FCRA bank A/c?

1. Subhash Mittal says:

   May 8, 2014 at 8:01 am

   Dear SRRF Dialogue members,

   Remittances through Western Union are meant for inward remittances from individuals only. RBI has specifically forbidden transfer of funds for commercial purposes. It has come out with specific guidelines where maximum amount in one transaction which can be remitted is USD 2500. Further remittances have to be restricted to \’30\’ in a year. To control that money is not going into wrong hands, there are strict monitoring requirements, including providing of identification documents, etc. One can even receive upto Rs 50,000/- in cash through Western Union, higher amounts will need to be given through DD/Pay Order.

   In view of the above, I would not feel comfortable to collect money through Wetern Union and then deposit in FCRA account …. where is the control, which FCRA dept. imposes. My suggestion for FCRA purpose please do not use Western Union.

   rgds
2. L N Sharma says:

   May 8, 2014 at 7:05 am

   Dear Ajaya,

   In my opinion, Only individual person (not company/trust/Society nor FC account) may receive Indian Currency through Western Union to his/her bank account.

   Regards,

   L N Sharma
3. Sriraman says:

   May 8, 2014 at 7:04 am

   In my view, as long as the recipient bank is willing to issue a “Foreign Inward Remittance Certificate” (FIRC), the funds could be received even through Western Union. Again, it is not the currency of receipt, which determines, if the funds received are FCRA funds or local funds. Let’s look at two different examples: A) The Indian office of a foreign bank (such as, Standard Chartered Bank, HSBC, etc.), make a contribution to an NGO, this will be deemed as FCRA receipt, although the currency of remittance is in Indian Rupees. B) A non-resident Indian (NRI) holding an Indian passport but is living abroad, irrespective of whichever currency in which s/he makes the contribution, would still be treated as a local donation. In such circumstances, it is important to get a copy of the Passport of the donor and safely file it for future references.
   I am also aware, some INGOs, especially from UK, when they remit funds to the Indian NGOs, the remittances are usually made in INR.
   In view of this, in my view INR funds from Canada could be received into the designated FCRA bank account, provided the bank concerned is willing to issue FIRC.

   Best regards

   Sriraman
4. B V Soma Sastry says:

   May 8, 2014 at 6:59 am

   Dear Ajaya,

   Greetings from Hyderabad!

   Kindly note that FCRA allows transactions only through the banking channels. Therefore transfer of funds from Western Union, in my opinion, is not permissible in FCRA.

   Thanks and regards,

   B V Soma Sastry
5. kaithang says:

   May 7, 2014 at 9:43 am

   I do not know if there is any specific bar to receiving funds from foreign sources, as defined under the FCRA, through Western Union as long as the same is routed through the FCRA-registered bank account of the recipient organisation, and the same is accounted for reporting purposes also. As far as the rules are concerned, since the rules define “A donation, delivery or transfer of any article, currency or foreign security” to include, by implication even delivery of currency by hand, receipt in the bank account through transfers by use of banking or other medium by known donors appears to be acceptable.
   This is my understanding. However, I am interested to know more on this.

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