FCRA Amendments

This is further to our email dated 19th January 2021 regarding the amendments to FCRA Act 2010 issued by the Ministry of Home Affairs (MHA).

We reiterate the important points of the guidelines for your information & urgent necessary action: -

• You are required to open a new ‘FCRA account’ with State Bank of India, New Delhi Main Branch (NDMB), Sansad Marg, New Delhi 110001 before 31st March, 2021.

• Once the account with SBI (NDMB) is opened, the said account details need to immediately be intimated to the HDFC Bank Ltd. branch where you currently maintain your FCRA account.

• On opening of the FCRA account with SBI, NDMB as per the revised MHA guidelines, no foreign currency funds can be received in the FCRA account with HDFC Bank Ltd. All such foreign currency donations can henceforth be received ONLY in the FCRA account opened with SBI (NDMB). Any foreign currency donation received directly would be a breach of the MHA guidelines. We urge you to be conscious of the same and inform your donors of the Bank account details of SBI, NDMB for receipt of donations.

• As permitted by MHA, you can retain your existing HDFC Bank FCRA account as “ Another FCRA account “ or a ‘FCRA Utilisation account’ and continue with all the benefits and features of our account and branch network. A request letter with necessary documentation may be submitted to the Home Branch / or the Relationship Manager for the conversion. The account would be for the purpose of keeping or utilising the foreign contribution which has been received from the 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.

• In absence of any intimation from you regarding opening of account with SBI NDMB and consequent treatment of existing FCRA account maintained with HDFC Bank , we shall be changing the status of the FCRA account with us to
  

“ No Credit “ with effect from 1st April 2021, as stipulated by the MHA guidelines . Debits in the account will be permitted for utilisation of residual funds if any, provided that MHA approval is valid.

• Additionally, the amended FCRA 2010 prohibits transfer of foreign contribution by the recipient to any other NGO/person. We urge you to be conscious of the same and be guided by the revised guidelines to avoid such transactions that are prohibited by MHA.

• In case of expiry / cancellation / suspension of the MHA approval, as published on the MHA website, the FCRA account status will be changed to” Block ” status. As per the revised MHA guidelines, “any person, whose certificate of registration has ceased to exist shall neither receive nor utilise the foreign contribution until the certificate is renewed.” Residual funds in the account if any can be utilised only on renewal of the MHA approval or fresh registration is granted by the Central Government.

Should you have any queries on the above, please do call your Branch or Relationship Manager.

Assuring you of our best services,

Yours sincerely

Sunali Rohra
Executive Vice President
Government & Institutional Business