Skip to content

CS Professional · CSR and Social Governance · Foreign Funding to Non-Corporate Entities

Gramin Vikas Society received foreign contribution in its FCRA Account at the specified SBI branch, New Delhi. It wants to move part of it to Chennai for project spending. Under section 17, which course is permitted?

Section 17 permits another FCRA Account in a scheduled bank of choice for keeping or using contribution received from the New Delhi account, plus utilisation accounts in scheduled banks. Receipts must still come into the New Delhi account, and no non-foreign funds may be deposited.

  1. AOpen another FCRA Account in a scheduled bank of its choice to keep or use the contribution received from the New Delhi FCRA Account, and also open other accounts in scheduled banks to which it may transfer funds for utilisationCorrect
  2. BTransfer the funds to a savings account in a cooperative society
  3. CReceive further foreign contribution directly in the Chennai account, bypassing New Delhi
  4. DOpen a Chennai account that may also accept local donations to make utilisation easier

Explanation

The first and second provisos to section 17(1) allow another FCRA Account in any scheduled bank of choice for keeping or utilising contribution received from the New Delhi account, and one or more accounts in scheduled banks for utilisation. Fresh receipt must still be in the New Delhi FCRA Account, and the third proviso bars non-foreign funds in these accounts.

Did you get it right without looking?

One question tells you little. A timed set on Foreign Funding to Non-Corporate Entities shows your real accuracy, how long you take and where you lose marks.

Practise Foreign Funding to Non-Corporate EntitiesFree diagnostic mock

More Foreign Funding to Non-Corporate Entities questions