The Ministry of Home Affairs (MHA) has permitted existing Foreign Contribution (Regulation) Act (FCRA) account holders to open their “FCRA Account” in the New Delhi Main Branch (NDMB) of the State Bank of India (SBI), 11 Sansad Marg, New Delhi – 110001 up to 30.06.2021. After that date, they shall not be eligible to receive foreign contributions in any account other than the “FCRA Account” opened in the NDMB.
The MHA has said in a Public Notice which is available on www.fcraonline.nic.in, that all persons/NGOs/Associations who already have been granted a certificate of registration or prior permission by the Central Government, should note that they shall not receive any foreign contribution in any account other than the designated “FCRA Account” opened at the NDMB of the SBI, 11 Sansad Marg, New Delhi – 110001 from the date of opening of such account or 01.07.2021, whichever is earlier.
Existing FCRA Account Holders were earlier given time till 31.03.2021 to open their FCRA account in the NDMB under the amended Section 17(1) of the FCRA, 2010. The amended section had come into effect on September 29, 2020. The extension in time has been given in view of the exigencies arising out of the COVID-19 situation and to ensure smooth transition by NGOs to the amended FCRA regime. Earlier, vide a Public Notice dated 13th October, 2020, the government has restricted the NGOs and others from receiving any fund from 1-4-2021 other than the designated FCRA Bank Account.
The Foreign Contribution Regulation Act, 2010 requires the opening of a designated FCRA account, which is an exclusive account in which foreign contribution is to be received. The FCRA Amendment Act of 2020 amended Section 17 and now requires that a primary FCRA account for any organization in India needs to be exclusively opened with the State Bank of India, New Delhi. All the subsequent SOPs issued by the FCRA had mandated all the organizations registered under FCRA to open the FCRA Designated Account in New Delhi Main Branch (NDMB), SBI, by 31st March, 2021 or earlier. This extension has now come in the light of multiple petitions filed by the NGOs in courts stating that the resurgence of the COVID-19 pandemic has caused grave delay in opening the new designated FCRA Account. The second wave of the COVID-19 pandemic has led to limited functioning of offices around the country. As a consequence, the Petitioner is neither able to receive foreign contribution in its existing non-SBI FCRA account nor open a primary FCRA account with SBI to receive foreign contribution. This is severely restricting its activities, including providing COVID-19 related relief and paying of urgent salaries of staff, as well as affecting its charitable and educational activities, due to administrative delays completely out of its control.
The FCRA department has, thus, extended the due date for opening the said Account in the NDMB Branch to 30th June, 2021. All the organizations that have not opened their FCRA Account in the NDMB branch can open such an account till 30th June, 2021 thereby providing relaxation to such organizations.
The notice further states that the organizations can receive FC funds in their old designated bank account till the date of opening such an account in the SBI, NDMB Branch or 30th June 2021, whichever is earlier. In other words, the organizations would not be allowed to receive FC funds in their old designated Bank account from the date of opening such an account or 1st July, whichever is earlier.
Prima facie, it implies that all the registered organizations will be able to receive funds in their existing designated bank accounts till 30th June 2021. However, this is not the case. It should be remembered that all the organizations cannot receive the FC funds in their old designated bank account till 30th June 2021.
Para 3 of the Notice categorically states that all the FCRA registered organizations shall not receive any FC in any account other than the designated "FCRA Account" opened at SBI, NDMB from the date of opening of such account or 1st July, 2021, whichever is earlier.
The expression ‘from the date of opening of such account’ implies that where any organization has opened the bank account at SBI, NDMB Branch is not eligible to receive any funds in any other FC bank account. The benefit of extension under this notice shall not be available to them.
Only those organizations which are yet to open its account with SBI, NDMB is eligible to receive the fund in the existing FC account. This can be continued till the date of opening of bank account with SBI, NDMB and upto 30.06.2021. Once the account is opened, it cannot receive any fund in any other bank account.
Thus the trigger point of non-applicability of the extension under this notice is the opening of account with SBI, NDMB. It is immaterial whether the organization has received the FC-6C approval from the government or not. Thus, if the organization has opened the account but not received the approval and is waiting for the same, it cannot receive FC funds in the existing bank account.
Para 3 of the said Notice reads as follows-
All the persons/NGOs/Associations who already have been granted certificate of registration or prior permission by Central Government may take note that they shall not receive any FC in any account other than the designated "FCRA Account" opened at NDMB of the SBI, 11, Sansad Marg, New Delhi - 110 001 from the date of opening of such account OR 1 st July, 2021, whichever is earlier.
In short, only those organizations which are yet to open a FCRA bank account with SBI, NDMA Branch or the account opening process is in progress can receive funds in existing FCRA bank account till 30.06.2021. In the meantime, if a bank account is opened, it cannot receive funds in the existing FCRA bank account even if it applied for FC-6C approval and is waiting for the same. Opening of an account shall be completed when the organization receives an account opening letter from the bank.
Read the full text of the Public Notice dated 18.05.2021 on Extension for opening FCRA designated bank account with SBI, NDMB
No. 11/21022/36(58)/2021 -FCRA-III
Government of India
Ministry of Home Affairs
Foreigners Division, FCRA Wing
First Floor, MDC National Stadium,
New Delhi-11 001 Dated: 18th May, 2021,
PUBLIC NOTICE
Subject: - Procedure for opening and operating the designated "FCRA Account" as provided under the amended Section 17(1) of the Foreign Contribution (Regulation) Act, 2010
This is in continuation of the Ministry of Home Affairs' Public Notice No. 11/21022/23(35)/2019-FCRA-lll dated 13.10.2020 regarding procedure for opening and operating the designated "FCRA Account" as provided under the amended Section 17(1) of the Foreign Contribution (Regulation) Act, 2010.
2. Keeping in view the exigencies arising out of COVID-19 situation and to ensure smooth transition to the amended FCRA regime, in exercise of the powers conferred by section 50 of the Foreign Contribution (Regulation) Act, 2010, the Central Government makes the following amendments in the above-mentioned Public Notice: -
The existing FCRA account holders have now to open the "FCRA Account" in the New Delhi Main Branch (NDMB) of the State Bank of India, 11 Sansad Marg, New Delhi-110001 up to 30th June, 2021 or earlier. After that date they shall not be eligible to receive FC in any account other than the "FCRA Account" opened in the NDMB.
3. All the persons/NGOs/Associations who already have been granted certificate of registration or prior permission by Central Government may take note that they shall not receive any FC in any account other than the designated "FCRA Account" opened at NDMB of the SBI, 11, Sansad Marg, New Delhi - 110 001 from the date of opening of such account OR 1 st July, 2021, whichever is earlier.
(D.S. Parihar)
Deputy Secretary to the Government of India
Download Copy of FCRA Public Notice dated 18.05.2021 on Extension for opening FCRA designated bank account with SBI, NDMB in pdf format
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