Sir,
I have a query that our NGO BRWAS is Registered Under Societies Act 1961, WB (Not FCRA Registered)
A NRI servicing in Singapore. He wants to transfer money for development of School in India .
Can he transfer from his Singapore Bank account?
Gopal Ch Mondal
Please check the FAQ’s
Key Definitions and Concepts under FCRA, 2010 A.
Foreign Contribution.
Please check Question number 8
The above reply is correct. However, by way of abundant precaution before remitting the amount the donor needs to confirm that the NGO has valid FCRA permission as on the date of remittance. In the recent past FCRA of many NGOs have been cancelled on account of non-compliance of the guidelines and failure to file updated statement of accounts. In case it is already cancelled it is better to ask the NGO to apply again and activitate the FCRA perimission.
In addition to this every NGO should also obtain CSR 1 number in addition to FCRA in case they are getting inward foreign remittance for CSR activities. CSR is getting compliance driven day by day and it is therefore recommended that both the donors as well as the receipient do comply with updated rules and & regulations of compliance from time to time.
This would help in improving their rating as well as image in the society. A Social Stock Exchange is likely to come in existence in India soon. This proposed SSE will give opportunities for NGOs to raise funds by way of shares, deposits, Zero coupan bonds, Fixed deposits, accept donations, gifts etc. for social causes. In addition it is also expected that each NGO will given rating depending on the basis of their experience, credibility, compliance, financial capabilities, valid registration certificates and successful track record of completion of projects.
I suggest all NGOs in India to prepare, plan and project themselves accordingly as a reputed, reliable and rated NGO by SSE.
All the Best!
Please check the FCRA act 2010 point number 2.
Is ‘NRI’ that you refer to an Indian citizen or foreign citizen. Best indicator is ask him to confirm if he is holding Indian Passport or Foreign Passport. In case of latter, he will be regarded as Foreign Source and cannot transfer any funds to any NGO, which does not have FCRA registration or prior permission. If this is your case, you may consider applying for a ‘Prior Permission’ to FCRA Dept.
In case the person is Indian citizen, then he can transfer funds even from his Singapore Account. But please make sure he is not referring to OCI Card,, which is not a proof of citizenship.
Dear Mr. Mittal,
With reference to your email I may say that in my view an NRI means that he/she is essentially an Indian Citizen. Do persons of Indian origin who have taken foreign citizenship continue to be called NRIs? In fact they are not Indians any longer.
They are foreigners except for the fact that they are of Indian origin and therefore entitled to have the ‘Overseas Citizen of India’ (OCI) card.
Kindly clarify whether they can still be called NRIs?
This is just my query as I always thought they cease to be NRIs once they take foreign citizenship.
Kind Regards,
MBL Bhargava
You are technically absolutely correct. Problem is NRI has become a generic term, used for any Indian living abroad.
Even Person of Indian Origin, and opted for the citizenship of another country e.g. Canada, though he donates in INR, I understand it would fall under FCRA rules.
Yes, that is correct. All individuals who are foreign citizens fall in the definition of foreign source for the purposes of FCRA. This means that even persons of Indian origin, who have taken citizenship of another country are foreign source.