This amendment came into force 29 September 2020 onwards (Notification S.O. 3395(E) dt. 29 Sep, 2020 )
Administrative cost limited to 20%:
- Part of the foreign contributions that can be used for administrative costs is now reduced to 20%. Any administrative cost exceeding 20% will need prior approval from the Central Government (Section 4, Pg 2, FCRA Amendment 2020 ).
- Prior to this amendment, the administrative costs were allowed upto 50% of the total foreign contribution (Section 8, Pg 7, The FCRA 2010 ).
Aadhar Card or Passport/OCI mandatory:
- Any person or organisation seeking to apply for/renew an FCRA certificate or seeking a prior permission to accept foreign contributions, will need to submit Aadhar cards of all the office bearers and key functionaries of the organisation or Passport/Overseas Citizen of India (OCI) Card, if functionaries are foreigners (Section 7, Pg 2, FCRA Amendment 2020 ).
- Section 12A is the new section inserted in the Principal Act describing the requirement above.
- FCRA bank account to be opened at State Bank of India (SBI), New Delhi:
- All foreign contributions can only be received in an account opened at State Bank of India, New Delhi Main Branch, 11, Sansad Marg, New Delhi - 110001 (NDMB) designated as "FCRA Account" (Notification S.O. 3479(E) ).
The details of the above bank branch are as follows :
Branch Name & Address State Bank of India
New Delhi Main Branch
11, Sansad Marg, New Delhi - 110001
Branch code 00691 IFSC code SBIN0000691 SWIFT SBININBB104 firstname.lastname@example.org
- The applicant does not need to visit the above branch in New Delhi to open the account. Any SBI Branch in the country can be visited to open the account in the above branch at New Delhi .
- Last date for opening the FCRA Account at State Bank of India, New Delhi Main Branch (NDMB) is specified as 31 March, 2021 after which, existing FCRA certified organisations will not be eligible to receive foreign contributions in any other account. However, fresh applicants of FCRA will have to open the "FCRA Account" at NDMB only to receive any foreign contributions after they are granted the certificate .
- One or more accounts in other scheduled banks could also be used to transfer and utilize the funds received in the above branch at SBI, Main Branch New Delhi (NDMB). NDMB will not levy any transfer charges or fees for transferring the foreign contribution from one FCRA Account to another FCRA account .
- None of these accounts should receive or deposit any funds other than foreign contributions (Section 12, Pg 3, FCRA Amendment 2020 ).
Prior to this amendment, foreign contribution funds could be received in any bank account
as specified in the application for the grant of FCRA Certificate (Section 17, Pg 11, FCRA 2010 ). As of the writing of this article,
62 different banks are integrated with FCRA .
Transfer of foreign contribution to another entity is not allowed:
- The Amendment does not allow transfer of funds received under FCRA to another person or organisation irrespective of the receiver's FCRA certification status (Section 3, Pg 2, FCRA Amendment 2020 ).
Prior to this amendment, foreign contribution funds could be transferred
to another FCRA certified organisation/person without restriction. Transfer of foreign contribution funds to a non-FCRA certified
organisation/person required prior approval from the Central government (Section 7, Pg 7, FCRA 2010 ).
Restriction to receive or utilize foreign contribution if contravened:
- If the Central Government, after holding a summary inquiry, has reasons to believe that the organisation or person has contravened the Act, can direct the organisation or person to not receive or utilize the foreign contribution already received without prior approval of the Central Government, even while any further inquiry may be pending (Section 5, Pg 2, FCRA Amendment 2020 ).
- Earlier, an FCRA certified organisation or person was prohibited from utilizing the foreign contribution only when found ‘guilty’ (Section 11(2), Pg 9, FCRA 2010 ).
Surrendering of FCRA permitted:
- The government now permits surrendering of the FCRA certification if the authority is satisfied that the organisation or person has not contravened any of the provisions of the Act. In such a case, the management of foreign contribution & any asset created out of it will be vested with the authority as prescribed by the Government (Section 9-10, Pg 3, FCRA Amendment 2020 ).
Public Servants prohibited from accepting foreign contribution:
- Adds that a ‘public servant’ (Section 21, Pg 16, Indian Penal Code ) cannot accept any foreign contributions (Section 2, Pg 1, FCRA Amendment 2020 ).
- This adds to the list that already mentions a set of organizations/people/groups/functionaries like Judges, Government servants, employees of any corporation or any body owned or controlled by the Government that cannot receive foreign contributions (Section 3, Pg 5, FCRA 2010 ).
Inquiry before FCRA renewal:
- Before renewing an FCRA certificate, the Government may make an inquiry to ensure that all conditions of the certification are being fulfilled such as it is not benami, has not been prosecuted and all other conditions that are already a part of the Act under Section 12(4) (Section 11, Pg 3, FCRA Amendment 2020 ).
- Prior to this amendment, there was no provision of conducting an inquiry before renewal (Section 16, Pg 11, FCRA 2010 ).
Suspension of registration:
- If the Central Government decides to suspend the FCRA certificate (pending consideration of cancelling the certificate) for 180 days, the suspension can now be further extended by up to additional 180 days (Section 8, Pg 2, FCRA Amendment 2020 ).
- Prior to this amendment, the suspension was limited to a period of 180 days (Section 13, Pg 10, FCRA 2010 ).
- FCRA Amendment 2020 (Foreign Contribution (Regulation) Amendment Act, 2020): https://fcraonline.nic.in/home/PDF_Doc/fc_amend_07102020_1.pdf
- FCRA 2010 (Foreign Contribution (Regulation) Act, 2010):
- FCRA Dashboard:
- Indian Penal Code (IPC):
- Notification S.O. 3395(E) - Date of enforcement - 27/09/2020:
- Notification S.O. 3479(E). - SBI Branch Name:
- Procedure for opening & operating the designated "FCRA Account":
This article has been published by Saathi Re which is an information platform providing browsable and searchable information about social impact in India. The purpose of the article is to simplify information from the Foreign Contribution (Regulation) Amendment Act, 2020 for NGOs and persons registered under Foreign Contribution (Regulation) Act. The above article is no substitute for legal interpretation of the Bill or Act. A legal advice on these matters is advised and recommended. Saathi Re does not take any responsibility for any loss or damage caused to any organization or individual in any manner, due to any step taken, directly or indirectly, on the basis of the above article.