Wednesday, 20 July 2016

FCRA Update

Ministry of Home Affairs has issued a notice dated July 18, 2016 requesting all organisations with FCRA registration to update their FCRA bank account details (both designated bank account and utilization bank accounts) in Form FC-6 latest by 31st August, 2016.

If there is no change in your designated bank account or utilization account you need not do anything.

However, to double check log into click the tab for Form FC 6 and see if the details appearing on the MHA website are accurate and complete both in terms of the designated and utilization account/s. If not, click the yes button and make the change on or before 31st August 2016.

Several organisations may not have changed their designated FCRA Bank account but may have opened or closed ‘utilization accounts’. This requires to be updated.

Transfer of funds is allowed from the designated FC account to multiple account or accounts opened for its utilization.

However, no funds other than the amount received in the designated FC account shall be received or deposited in such multiple account or accounts.

Inter-account transfer of funds between the multiple accounts is not permissible.

Thus, if NGO XYZ has FCRA Bank Account No. 1234 and wishes to have a 'Project Utilization Account' for the funds sent by ABC Foundation (USA) it would be allowed.

The amount must first be received in your FCRA Bank account No. 1234 and then the entire amount received from ABC Foundation (USA) can be moved to 'XYZ (FCRA) – ABC Foundation Project Utilization Account'. No other funds should be added to this account other than from ABC Foundation and when the project is closed the remaining balance must be put back in FCRA Bank Account No. 1234.

One can have several FCRA Utilization accounts however any change regarding the designated or utilization account must be intimated to MHA by filing Form FC 6.

No comments:

Post a Comment