Section 17 of The Foreign Contribution (Regulation) Act, 2010
1[17. Foreign contribution through scheduled bank.--(1) Every person who has been granted certificate or prior permission under section 12 shall receive foreign contribution only in an account designated as "FCRA Account" by the bank, which shall be opened by him for the purpose of remittances of foreign contribution in such branch of the State Bank of India at New Delhi, as the Central Government may, by notification, specify in this behalf: Provided that such person may also open another"FCRA Account" in any of the scheduled bank of his choice for the purpose of keeping or utilising the foreign contribution which has been received from his "FCRA Account" in the specified branch of State Bank of India at New Delhi: Provided further that such person may also open one or more accounts in one or more scheduled banks of his choice to which he may transfer for utilising any foreign contribution received by him in his "FCRA Account" in the specified branch of the State Bank of India at New Delhi or kept by him in another "FCRA Account" in a scheduled bank of his choice: Provided also that no funds other than foreign contribution shall be received or deposited in any such account.
- (2)The specified branch of the State Bank of India at New Delhi or the branch of the scheduled bank where the person referred to in sub-section (1) has opened his foreign contribution account or the authorised person in foreign exchange, shall report to such authority as may be specified--
- (a)the prescribed amount of foreign remittance;
- (b)the source and manner in which the foreign remittance was received; and
- (c)other particulars, in such form and manner as may be prescribed.]
Summary
- This provision heavily regulates the specific bank accounts used for receiving international money.
- Anyone granted a certificate or permission must receive foreign contributions exclusively in a designated "FCRA Account" at a specific State Bank of India branch in New Delhi.
- Organizations can open other FCRA accounts in scheduled banks of their choice to keep or spend the money after it is transferred from the main New Delhi account.
- It is strictly forbidden to deposit any domestic funds or other money into these designated foreign contribution accounts.
- The banks must report the amount, source, and details of the foreign remittances to a specified government authority.
Practical examples
FAQ
1. Where do I receive foreign money under Section 17 of the FCRA 2010?
Under Section 17 of the FCRA 2010, you must receive foreign contribution only in an account designated as an FCRA Account in a specified branch of the State Bank of India at New Delhi.
2. Can I use a local bank under Section 17 of the foreign contribution rules?
Yes, under Section 17 of the foreign contribution rules, you can open another FCRA Account in a scheduled bank of your choice to keep or utilise money transferred from your main account in New Delhi.
3. Can I deposit local donations into my FCRA account under Section 17 of The Foreign Contribution (Regulation) Act, 2010?
No, under Section 17 of The Foreign Contribution (Regulation) Act, 2010, no funds other than foreign contribution shall be received or deposited in any such account.
4. Do banks report these deposits under Section 17 of the 2010 foreign funding law?
Yes, under Section 17 of the 2010 foreign funding law, the bank must report the prescribed amount of foreign remittance, its source, and how it was received to a specified authority.
Test yourself
Q1.Under Section 17 of The Foreign Contribution (Regulation) Act, 2010, where must a person initially receive all foreign contributions?
Q2.According to Section 17 of the FCRA 2010, what is the purpose of opening another "FCRA Account" in a scheduled bank of your choice?
Q3.Under Section 17 of the 2010 foreign contribution law, what restriction applies to all FCRA accounts?
Q4.According to Section 17 of The Foreign Contribution (Regulation) Act, 2010, what must the specified branch of the State Bank of India or the scheduled bank report to the specified authority?