From today we start a series on common quries being raised by several NGOs to help better understand of resent FCRA changes
One of the queries is, if NGOs can receive funds in their present FCRA Designated Account (let’s call it ‘existing designated account’) from a foreign donor. Answer is unequivocal YES, that is the basic reason govt has allowed to open A/c by 31st March 2021. Govt realized that it may take time to open bank a/c, and if no time slot is given, the whole Sector would come to stand still, since it would take time for thousands of NGOs to open bank account in SBI, Parliament Street.
Till the time bank account is opened, NGOs can receive funds in their existing designated account. However the day designated account is opened in SBI Parliament Street, from that day itself, no funds can be received in ‘existing designated account’. Also please note last day being 31st March, all must open the bank account in SBI Parliament Street Branch before 31st March 2021.
There is some confusion relating to what will happen to funds lying in the ‘existing designated account’ once SBI Parliament street account is opened. Is it to be transferred to SBI Parliament Street Branch? Answer is NO, the money lying in present account should remain there and can be ‘utilized’ from there itself. S.17(1) second para clearly states that another bank account can be opened wherever NGO wants to ‘keep or utilise’ funds. Thus money lying in your earlier designated bank account need not be transferred to SBI Parliament Street Branch. In any case money to be rec’d in SBI Parliament Street should be only ‘for the purposes of remittances of Foreign Contribution’. SBI Parliament Street Branch is not likely to accept any funds which are not coming from outside India.
Hope this clarifies a very important issue.
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Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place,
New Delhi – 110008
+Sansad Marg is Parliament Street in English
It’s worth noting that the recipient has an addition internal compliance with regard to this specific provision. The NGO should ensure that the public servant so appointed on the Board had complied with the new provisions. In other words, you will have to make sure that s/he was not in receipt of foreign funds from any other source also, not just limited to your NGO from the date of enactment of this Act.
Can a Public servant ,Govt Servant, acredated media person continue to be a Governing body member without receiving anything from funds
Under FCRA
Yes, anybody can be a member of a Governing Body, restrictions are defined in the relevant State Society Act & Charitable Body Act (if enacted). From FCRA perspective while there are no restrictions, however we advise not to make a person who is a foreign citizen / Board member in another society whose FCRA registration has been denied or under investigation for non-compliance with provisions. No problem with appointing a person who is a public servant, Govt servant, etc. as long as no payment being made to them from FCRA funds.
Dear Mr Subhash Mittal
Sir, you have done a very excellent talk which gave us such a good light into the new FCRA Amendment. Unfortunately, the video was cut in the middle. I have checked your website as well as the facebook page it has the same problem. Is tt possible to get the full version of the video and the discussions by the participants also.
Please send a link of the same.
Thanks so much
Suresh Ambat
President and Founder
Family Development Services
Bangalore
Sorry about this, link for the video has been resolved and is now functional. You may watch full webinar now.
Dear Sir,
I want to know , one of our Board member is signatories in our FCRA bank account . And she is also being paid from a project as she is giving her fulltime to the project activities. Shall we change our signatories or not.
Regards
Bhawani Nayak
Institute for Social Development
Plot 95, Phase -II , Kanan Vihar
Po- Patia, Bhubaneswar – 751 031
Odisha
To change or not is your decision, however since she is a Board Member, any payments to her will be regarded as Administrative Expense.
It is SBI Main Branch, 11 Sansad Road, New Delhi. And not SBI Parliament St Branch that is mentioned in Para 2.
Correct, Thank you. Desire to brevity got better of accuracy.
Sir
What if funds come into our designated existing FCRA a/c after 29-9-20. And the new SBI FCRA a/c in New Delhi has not yet been opened.
Will these funds be credited to our account.
If yes. Can they be used as per old notification or the new notification ?
Now no issue, till 31st March 2021. However get your account opened well before last date to avoid last minute issues.