Further to our Blogs posts of 26th December 2017 (https://capnewsviews.blogspot.in/2017/12/is-bank-where-you-maintain-your-fcra.html) and 8th January 2018 (https://capnewsviews.blogspot.in/2018/01/banks-gradually-integrating-with-fcra.html) more banks appear to have integrated with the Public Financial Management System (PFMS). Besides Standard Chartered Bank which we reported as now PFMS compliant, three other Banks, namely: Bank of India, Indian Overseas Bank and Kotak Mahindra Bank appear to have joined the PFMS league. Reportedly, Union Bank of India too has become PFMS compliant.
Ministry of Home Affairs has given associations registered under or having prior permission under FCRA 2010 to maintain their FCRA Bank Account (including FCRA Utilization Account/s) only with Banks which are PFMS compliant.
You have only until 21st January 2018 to comply
Ministry of Home Affairs had issued a list of PFMS compliant Banks (https://fcraonline.nic.in/home/PDF_Doc/fc_list_22122017.pdf) and if your association has an FCRA Bank account or an FCRA Utilization Account with a Bank which is not PFMS compliant, you have until 21st January 2018 to change to a Bank which is compliant.
In case your Bank is still not PFMS compliant, but, has assured you that it will get integrated soon, remember that the clock is ticking away. Please do not remain complacent.
Steps to change FCRA Bank Account.
- Open a new FCRA bank account with a bank which is PFMS-compliant.
- Go to the FCRA online platform and report the new FCRA Bank account in the online Form FC 6
- Next, transfer by cheque or NEFT/RTGS the entire amount from your existing FCRA Bank account to this new Bank account.
- You may either close the old FCRA Bank account or now treat it as a local/general bank account.
Steps to change FCRA Utilization Bank Account
- Transfer the entire amount from the FCRA Utilization Bank Account to your main designated FCRA Bank account which is now with a PFMS compliant bank.
- Open a new FCRA Utilization bank account with a bank which is PFMS-compliant.
- Go to the FCRA online platform and report the new FCRA Utilization Bank account in the online Form FC 6
- Next, transfer by cheque or NEFT/RTGS the appropriate amount to the new FCRA Utilization Bank Account.
- You may either close the old FCRA Utilization Bank account or now treat it as a local/general bank account.