OPENING OF ‘FCRA’ ACCOUNT

[Mr. M. GOVINDARAJAN]

Procedure for registration

An application for certificate of registration by a person, for acceptance of foreign contribution shall be made in electronic form in Form FC-3A with an affidavit executed by each office bearer and key functionary and member in Proforma ‘AA’ appended to these rules.    The applicant shall upload the signed or digitally signed application along with scanned documents as specified by the Central Government from time to time.  Any person making an application for registration shall have an FCRA Account.  Intimation in electronic form in Form FC-6D shall be furnished to the Secretary, Ministry of Home Affairs, New Delhi within fifteen days of the opening of any account.

Procedure for getting permission

An application for obtaining prior permission by a person for acceptance of foreign contribution, shall be made in electronic form in Form FC-3B with an affidavit executed by each office bearer and key functionary and member in Proforma ‘AA’ appended to these rules.   The applicant shall upload the signed or digitally signed application along with scanned documents as specified by the Central Government from time to time.   A person seeking prior permission under this rule may open one or more accounts in one or more banks for the purpose of utilizing 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 days of the opening of any account.

Foreign contribution through scheduled bank

Before 28.09.2020, Section 17(1) of the Act provides that every person who has been granted a certificate or given prior permission under section 12 shall receive foreign contribution in a single account only through such one of the branches of a bank as he may specify in his application for grant of certificate.  Such person may open one or more accounts in one or more banks for utilizing the foreign contribution received by him.  No funds other than foreign contribution shall be received or deposited in such account or accounts.

Opening of FCRA Account

The Act was amended vide ‘The Foreign Contribution (Regulation) Amendment Act, 2020 amended some provisions of the Act.  This amendment substitutes a new section for the existing section 17.  This amendment came into effect from 28.09.2020.

The newly substituted section 17(1) provides that 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.   Such person may also open another ‘FCRA Account’ in any of the scheduled bank of his choice for the purpose of keeping or utilizing the foreign contribution which has been received from his ‘FCRA Account’ in the specified branch of State Bank of India at New Delhi.  No funds other than foreign contribution shall be received or deposited in any such account.

Section 17(2) provides that the specified branch of the State Bank of India at New Delhi or the branch of the scheduled bank where the person has opened his foreign contribution account or the authorized person in foreign exchange, shall report to such authority as may be specified,-

• the prescribed amount of foreign remittance;
• the source and manner in which the foreign remittance was received; and
• other particulars,

in such form and manner as may be prescribed.

Bank branch

The Central Government has specified the New Delhi Main Branch of State Bank of India, (‘NDMB’ for short) 11 Sansad Marg, New Delhi – 110 001for the purpose of operating of FCRA account to receive foreign contribution.  The relevant particulars of that branch are as follows-

Branch Code: 00691;

IFSC: SBIN0000691;

SWIFT: SBININBB104

Email:  agmforex.00691@sbi.co.in;  agmcommercial.00692@sbi.co.in; sbi.00691@sbi.co.in.

Telephone numbers: 011-23374392, 23374390, 23374143, 23374213

All the persons/NGOs/Associations who have been already granted certificate of registration or prior permission by the Central Government to receive foreign contribution and whose present accounts are in banks or branches other than the specified branch NDMB shall have to open account in NDMB.  The Central Government has given sufficient time to such person to open the FCRA Account by 31.03.2021.

Vide Public Notice dated 18.05.2021, keeping in view of the exigencies arising out of COVID – 19 situation and to ensure smooth transition to the amended FCRA regime, extended the date to 30.06.2021 to open the FCRA account by the existing FCRA Account holders.   After that date they cannot get foreign contribution in the absence of opening of FCRA account in NDMB branch.

Validity of existing registration

Vide Public Notice dated 12.01.2021 the Ministry of Home Affairs extended the validity of registration certificate, which expires during the period between 29.09.2020 and 31.05.2021, up to 31.5.2021.

Vide Public Notice dated 18.05.2021 the Home Ministry of Home Affairs extended the validity of registration certificate, which expires during the period between 29.09.2020 and 30.09.2021, up to 30.09.2021.

Procedure

The following is the procedure to open FCRA account-

• Any entity which seeks to receive foreign contribution may approach either the nearest SBI Branch or any other SBI Branch of their choice for submitting the completed Account Opening Form (AOF) for KYC/photo/signature verification, scanning and forwarding through mail as well as sending hard copy of their AOF for opening of ‘FCRA Account’  at NDMB.
• The applicant shall receive an acknowledgement in this regard from the AOF accepting Branch.
• The AOF accepting branch of SBI would scrutinize AOF and KYC documents and email the verified documents to SBI, NDMB within 3 working days from the date of receipt of completed documents. SBI, NDMB shall confirm to the applicant entity through an email regarding receipt of AOF and other documents within 1 working day of its receipt.
• The NDMB will intimate to the applicant entity the details of “FCRA Account” so opened within 3 working days from the date of receipt of duly verified scanned copies of complete set of AOF and KYC documents from e-mail ID of the receiving branch. The intimation will be sent by registered email ID as well as through SMS.
• The applicant is to wait for Ministry of Home Affairs’ decision on the application of the entities / persons for grant of prior permission or registration certificate. As soon as the Ministry of Home Affairs approval for such registration or prior permission is conveyed to NDMB through an e-mail, NDMB shall allow inflow of foreign contribution into the relevant account from that date.
• ‘Entity’ can maintain their existing FCRA Accounts for Keeping or Utilization purposes.

Foreign inward remittance

The foreign inward remittance received should invariably contain following details-

• “FCRA Account” Number of the Beneficiary in the NDMB of SBI;
• SWIFT Code of NDMB (SBININBB104);
• Name of the Beneficiary;
• Name of the Donor/ Remitter;
• Account number of the Donor/Remitter;
• Donor/Remitter’s Address;
• Donor/Remitter’s Country of Residence.

SBI, NDMB shall intimate the customers, through an e-mail and SMS regarding receipt of foreign contribution.   The customers will be required to submit an undertaking detailing the purpose of the receipt of funds as per FEMA declaration and RBI guidelines to the SBI Branch, where it had initially submitted the AOF.  The Branch shall then forward duly scrutinized copies to New Delhi Main Branch on the designated email id fcra.00691@sbi.co.in.

Conversion rate

Standard Forex conversion rate as permitted under the FEMA guidelines and RBI instructions to be applied on the inflow of foreign currency. It shall be duly intimated to the account holder through an email.

Transfer of foreign contribution

The ‘FCRA Account’ holder shall have complete freedom to transfer the foreign contribution received in ‘FCRA Account’ opened in NDMB to another ‘FCRA Account’, if any, of his choice opened in any branch of any Scheduled Commercial Bank as per its convenience for keeping or utilization. It may also avail Internet Banking facility (with full transaction rights) with the NDMB.

NDMB will not levy any charges / fee etc on any transfer of foreign contribution from the ‘FCRA Account’ to ‘another FCRA Account’, if any, and to Utilization Account, if any, of the entity. For each such transfer, the ‘FCRA Account’ holder is to be informed through an e-mail as well as SMS immediately.

Grievance redressal mechanism

If the ‘FCRA Account’ holder raises any grievance while opening of ‘FCRA Account’ or while operating it,

• The said entity may send e-mail on fcracomplaints.00691@sbi.co.in.  The NDMB shall create an ‘FCRA Cell’ to handle all such e-mails.
• The applicant person / entity or the ‘FCRA Account’ holder may also register their complaints / grievances/ suggestion on 011-23374392, 23374143, and 23374213.
• If grievance is not redressed after accessing the aforementioned mechanism, it may be escalated through an e-mail to sbi.00691@sbi.co.in.  The DGM of NDMB will handle this matter.
•  If the applicant person / entity is not satisfied with the grievance redressal provided, then the grievance may be escalated to DGM (IBD-II) [e-Mail: dgmibd2.ibg@sbi.co.in. ] who is the apex grievance redressal authority.