Section 17 of FCRA : Section 17: Foreign Contribution Through Scheduled Bank

FCRA

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Explanation using Example

Let's consider an example where an Indian non-profit organization, 'GreenFuture Foundation', has been granted permission under section 12 of the FCRA to receive foreign contributions for their environmental conservation projects. According to section 17 of the FCRA:

  1. 'GreenFuture Foundation' must open an FCRA Account specifically for receiving foreign donations. This account must be opened in the designated branch of the State Bank of India in New Delhi, as specified by the Central Government.
  2. The organization can also open a secondary FCRA Account in any scheduled bank of their choice to transfer funds from their main FCRA Account for utilization purposes.
  3. If needed, 'GreenFuture Foundation' can open additional accounts in other scheduled banks to manage the foreign contribution received.
  4. It is important to note that only foreign contribution can be deposited in these FCRA Accounts, no other domestic funds should be mixed with this account.
  5. The bank where 'GreenFuture Foundation' has its FCRA Account must report the amount, source, and manner of foreign remittance received to the specified authority in the prescribed form and manner.

In this scenario, if 'GreenFuture Foundation' receives a donation from an international donor, it must ensure that the funds are deposited into their FCRA Account in SBI New Delhi and then manage or utilize the funds as per the provisions of the FCRA, 2010.