The Central Government vide a Notification No. GSR 506(E) dated 01.07.2022 in F. No. II/21022/23(04)/2021-FCRA-III through Foreign Contribution (Regulation) Amendment Rules, 2022 amends the Foreign Contribution (Regulation) Rules, 2011 (‘Rules’) under the Foreign Contribution (Regulation) Act, 2010 (‘FCRA’). It shall come into effect from 1st July 2022 with the Ministry of Home Affairs (MHA) issuing a notification and its publication in the Official Gazette.
These rules are notified by the government by virtue of the powers conferred to it under section 48 of the FCRA, 2010. In 2011, the government notified the Foreign Contribution (Regulation) Rules. Section 48 of the Act empowers the Central Government to make rules under this Act for carrying out the provisions of FCRA, 2010. Such rules shall come into effect by notifications as issued under this Act.
Summary of the Foreign Contribution (Regulation) Amendment Rules, 2022 effective from 1st July, 2022
The government has amended 5 rules to introduce 7 key amendments in the Foreign Contribution (Regulation) Rules, 2011 which are as follows-
Amendment 1 in Foreign Contribution (Regulation) Rules, 2011: Threshold limit and Time Limit increased in Rule 6:
This amendment is carried out in Rule 6 of the Rules. This rule prescribes for intimation of receipt of foreign contribution from relatives.
As per extant rule 6, any person receiving foreign contribution in excess of Rs. 1 Lakh in a financial year from any of his relatives shall inform the Central Government in Form FC-1 within a period of 30 days from the date of receipt of such contribution.
The Amendment Rules 2022 has increased the limit to Rs. 10 Lakh from the existing limit of Rs. 1 Lakh.
Further, the time limit to intimate the receipt of foreign contribution from relatives to the Central Government in FC-1 is increased to 3 months from the existing time limit of 30 days.
Hence, the effect of the amendment is that receipt of any gift or foreign contribution by an Individual from foreign relatives is required to be intimated to the Central Government in Form FC-1 within a period of 3 months if the amount exceeds Rs. 10 Lakh in a financial year.
The limit of reporting the amount of Rs. 1 Lakh is now enhanced to Rs. 10 Lakh from 1st July 2022. Also, the time limit to furnish FC-1 increased from 30 days to 3 months.
The text of the amendment reads as follows-
2. In the Foreign Contribution (Regulation) Rules, 2011 (hereinafter referred to as the said rules), in rule 6, —
(i) for the words “one lakh rupees”, the words “ten lakh rupees” shall be substituted;
(ii) for the words “thirty days”, the words “three months” shall be substituted;
Updated text of Rule 6 of FCR Rules, 2011 as amended by FCR Amendment Rules, 2022 from 1st July, 2022 reads as follows:
6. Intimation of receiving foreign contribution from relatives. - Any person receiving foreign contribution in excess of one ten lakh rupees or equivalent thereto in a financial year from any of his relatives shall inform the Central Government regarding the details of the foreign contribution received by him in electronic form in Form FC-1 within thirty days three months from the date of receipt of such contribution.
Amendment 2 in Foreign Contribution (Regulation) Rules, 2011: Time Limit increased in Rule 9:
This amendment is carried out in clause (e) of sub-rule (1) and sub-rule (2) of Rule 9 of the Rules. This rule prescribes making an application for FCRA registration or obtaining prior permission to receive foreign contribution.
One of the conditions of obtaining the FCRA registration or prior permission is that the organization making the application must have an FCRA Bank account.
Extant Rule 9(1)(e) prescribes furnishing an intimation for the opening of an additional FC-utilisation Bank Account for the purpose of utilisation of foreign contribution.
Similarly, Rule 9(2)(e) prescribes furnishing an intimation for the opening of an additional FC-utilisation Bank Account for the purpose of utilisation of foreign contribution in case of prior permission.
The existing rules say a person may open one or more accounts in one or more banks for the purpose of utilising the foreign contribution after it has been received and, in all such cases, intimation in electronic form in Form FC-6D shall be furnished to the Secretary, Ministry of Home Affairs, New Delhi within 15 days of the opening of any account. This is applicable both for FCRA registration and FCRA prior permission.
The Amendment Rules 2022 has increased the time limit to furnish the intimation in Form 6D to 45 days from 15 days in both the cases of FCRA registration and FCRA prior permission with effect from 1st July 2022.
Hence, the effect of the amendment in Rule 9(1)(e) is that FCRA registered entitles shall be required to furnish Form FC-6D within a period of 45 days from the date of opening an FCRA utilization bank account. In the case of entities with FCRA prior permission, the Form FC-6D shall be required to be furnished within a period of 45 days from the date of opening an FCRA utilization bank account as per Rule 9(2)(e).
The time limit to furnish FC-6D increased to 45 days from 15 days from 1st July 2022.
The text of the amendment reads as follows-
3. In the said rules, in rule 9,
(i) in sub-rule (1), in clause (e), for the words “fifteen days”, the words “forty five days” shall be substituted;
(ii) in sub-rule (2), in clause (e), for the words “fifteen days”, the words “forty five days” shall be substituted;
Updated text of Rule 9 of FCR Rules, 2011 as amended by FCR Amendment Rules, 2022 from 1st July, 2022 reads as follows:
9. Application for obtaining 'registration' or 'prior permission' to receive foreign contribution. - (1)[(a) …….
(b) ……………..
…..
(e) The person may open one or more accounts in one or more banks for the purpose of utilising the foreign contribution after it has been received and, in all such cases, intimation in electronic form in form FC-6D shall be furnished to the Secretary, Ministry of Home Affairs, New Delhi within fifteen forty five days of the opening of any account.
(1A) ……
(2) …….
(d) ……
(e) person seeking prior permission under this rule may open one or more accounts in one or more banks for the purpose of utilising the foreign contribution after it has been received and in all such cases intimation in electronic form in form FC-6D shall be furnished to the Secretary, Ministry of Home Affairs, New Delhi within fifteen forty five days of the opening of any account.
Amendment 3 in Foreign Contribution (Regulation) Rules, 2011: Relaxation provided from the quarterly declaration of FC receipts:
This amendment is carried out in clause (b) of rule 13 of the Rules.
The extant Rule 13(b) provides for intimation of quarterly receipt of foreign contribution by FCRA registered entitles or associations on their official website or on the FCRA website.
As per the existing provisions of Rule 13(b), any person receiving foreign contribution in a quarter of the financial year shall place details of foreign contribution received on its official website or on the website as specified by the Central Government within fifteen days following the last day of the quarter in which it has been received clearly indicating the details of donors, amount received and date of receipt.
The Amendment Rules 2022 has omitted clause (b) of Rule 13 from the Rules with effect from 1st July 2022.
Hence, the effect of the amendment in Rule 13(b) is that FCRA registered entitles shall not be required to furnish any intimation of quarterly receipt of foreign contribution either on their own website or on the FCRA website.
The text of the amendment reads as follows-
4. In the said rules, in rule 13, clause (b) shall be omitted.
Updated text of Rule 13 of FCR Rules, 2011 as amended by FCR Amendment Rules, 2022 from 1st July, 2022 reads as follows:
13. Declaration of receipt of foreign contribution. - (a) …….
(b) Omitted
Amendment 4 in Foreign Contribution (Regulation) Rules, 2011: Time Limit increased in Rule 17A:
This amendment is carried out in rule 17A of the Rules.
The extant Rule 17A provides for intimation of change of designated bank account, name, address, aims, objectives or office bearers, key members or functionaries of an FCRA registered entity or association or which is granted prior permission.
As per the existing provisions of Rule 17A, any person who has been granted a certificate of registration under section 12 or prior permission under section 11 of the Act shall intimate the following changes in the prescribed form electronically within 15 days of such change-
The Amendment Rules 2022 has increased the time limit to furnish the intimation in Form 6A to Form 6E to 45 days from 15 days.
Hence, the effect of the amendment in Rule 17A is that the time limit for intimating changes in name or address in Form FC-6A, changes in nature, objects and registration in Form FC-6B, changes in designated FCRA bank account in Form FC-6C, Changes in FCRA utilization Bank account in Form FC-6D or changes in members etc. in Form FC-6E is increased to 45 days from existing 15 days.
This amendment shall take effect from 1st July 2022.
The text of the amendment reads as follows-
5. In the said rules, in rule 17A, for the words “fifteen days”, the words “forty five days” shall be substituted;
Updated text of Rule 17A of FCR Rules, 2011 as amended by FCR Amendment Rules, 2022 from 1st July, 2022 reads as follows:
17A. Change of designated bank account, name, address, aims, objectives or Key members of the association. - A person who has been granted a certificate of registration under section 12 or prior permission under section 11 of the Act shall intimate in electronic form within fifteen forty five days, of any change in the following, namely:-
(i) name of the association or its address within the State for which registration/ prior permission has been granted under the Act in Form FC-6A;
(ii) its nature, aims and objects and registration with local/relevant authorities in Form FC-6B;
(iii) bank and/or branch of the bank and/or designated foreign contribution account number in Form FC-6C;
(iiia) bank and/or branch of the bank for the purpose of utilising the foreign contribution after it has been received in Form FC-6D; and
(iv) office bearers or key functionaries or members mentioned in the application for grant of registration or prior permission or renewal of registration, as the case may be, in Form FC-6E.
Provided that the change shall be effective only after final approval by the Central Government.
Amendment 5 in Foreign Contribution (Regulation) Rules, 2011: Form to be prescribed in Rule 20:
This amendment is carried out in rule 20 of the Rules.
The extant Rule 20 provides for filing of an application for revision of an order passed by a competent authority under the FCRA, 2010 on a plain paper.
As per the existing provisions of Rule 20, an application for revision of an order passed by the competent authority under section 32 of the Act shall be made to the Secretary, Ministry of Home Affairs, Government of India, New Delhi on a plain paper along with a fee of Rs. 3,000/- only.
The Amendment Rules 2022 provides for making an applocation for revision of an Order in the prescribed form which shall be required to be filed electronically.
Hence, the effect of the amendment in Rule 20 is that henceforth application for revision of an Order cannot be made on a plain paper. Instead, it shall be made in the prescribed form and manner and shall be required to be filed electronically.
This amendment shall take effect from 1st July 2022.
The text of the amendment reads as follows-
6. In the said rules, in rule 20, for the words “on a plain paper”, the words “in such form and manner, including in electronic form as may be specified by the Central Government” shall be substituted.
Updated text of Rule 20 of FCR Rules, 2011 as amended by FCR Amendment Rules, 2022 from 1st July, 2022 reads as follows:
20. Revision. - An application for revision of an order passed by the competent authority under section 32 of the Act shall be made to the Secretary, Ministry of Home Affairs, Government of India, New Delhi on a plain paper in such form and manner, including in electronic form as may be specified by the Central Government and it shall be accompanied by a fee of rupees three thousand only, which shall be paid through the payment gateway specified by the Central Government.
Conclusion
The Amendment in FCR rules, 2011 basically provides for the extension of various time limits for furnishing the prescribed forms. It also relaxed entities from displaying quarterly receipts of FC receipts. Further, application for Revision of Orders shall be made in the form to be prescribed later by the Central Government.
It should be noted that the principal FCR rules were published on April 29, 2011, and subsequently amended on April 12, 2012, December 14, 2015, March 7, 2019, September 16, 2019, November 10, 2020, and January 11, 2021.
The FCRA regulates all entities, associations and NGOs which intend to receive foreign donations. It is mandatory to register themselves under the FCRA and the registration so granted shall remain valid for a period of 5 years which is required to be renewed thereafter for a further period of 5 years.
Also Read:
MHA Notifies Penalty for Compounding of Offences under FCRA
Read the full text of MHA Gazette Notification GSR 506(E) dated 01.07.2022 on Foreign Contribution (Regulation) Amendment Rules, 2022
MINISTRY OF HOME AFFAIRS
NOTIFICATION
New Delhi, the 1st July, 2022
G.S.R. 506(E).—In exercise of the powers conferred by section 48 of the Foreign Contribution (Regulation) Act, 2010 (42 of 2010), the Central Government hereby makes the following rules further to amend the Foreign Contribution (Regulation) Rules, 2011, namely:-
1. Short title and commencement.—(1) These rules may be called the Foreign Contribution (Regulation) Amendment Rules, 2022.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Foreign Contribution (Regulation) Rules, 2011 (hereinafter referred to as the said rules), in rule 6, —
(i) for the words “one lakh rupees”, the words “ten lakh rupees” shall be substituted;
(ii) for the words “thirty days”, the words “three months” shall be substituted;
3. In the said rules, in rule 9,
(i) in sub-rule (1), in clause (e), for the words “fifteen days”, the words “forty five days” shall be substituted;
(ii) in sub-rule (2), in clause (e), for the words “fifteen days”, the words “forty five days” shall be substituted;
4. In the said rules, in rule 13, clause (b) shall be omitted.
5. In the said rules, in rule 17A, for the words “fifteen days”, the words “forty five days” shall be substituted;
6. In the said rules, in rule 20, for the words “on a plain paper”, the words “in such form and manner, including in electronic form as may be specified by the Central Government” shall be substituted.
[F. No. II/21022/23(04)/2021-FCRA-III]
V.S. RANA, Director (FCRA)
Note : The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Subsection (i), vide notification number G.S.R. 349(E), dated the 29th April, 2011 and subsequently amended, vide G.S.R. 292 (E), dated the 12th April, 2012, G.S.R. 966 (E), dated the 14th December, 2015, G.S.R. 199 (E), dated the 7th March, 2019, G.S.R. 659 (E), dated the 16th September, 2019, G.S.R. 695(E), dated the 10th November, 2020 and a Corrigendum vide G.S.R. 17(E), dated the 11th January, 2021.
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