FCRA Amendments
PUBLISHED ON: 14-01-2021
- The Foreign Contribution Regulation Act, 2010 (“FCRA”) sets out the regulatory framework receiving foreign contributions in India, w.e.f. 28 September 2020.
- With the recent amendments, the regulatory framework has undergone certain key changes.
Pre-Amendment | Post Amendment |
A person who had obtained a specific permission or registration under the FCRA could transfer the foreign contribution (“Original Receiver”) to another person with the permission of the Central Government or to a person who has obtained registration under the FCRA. | With the amendment, the Original Receiver is prohibited from transferring the foreign contribution. |
The cap on the administrative expenses was allowed upto 50% of the foreign contribution in a financial year. | This cap has now been reduced to 20%. |
The Original Receiver was allowed to receive the foreign contribution in a bank account specified in the application made by the Original Receiver at the time of seeking the registration/approval. | Foreign contribution can now only be received in account designated as “FCRA Account” in a branch of the State Bank of India at New Delhi as may be notified. However, another ‘‘FCRA Account’’ in any of the scheduled bank of the Original Receiver’s choice is allowed 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. |
The Central Government may require the Aadhaar number of all its office bearers or Directors or other key functionaries, or a copy of the Passport or Overseas Citizen of India Card, in case of a foreigner to be submitted at the time of seeking registration/approval/renewal.
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