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CS Executive · Economic, Commercial and Intellectual Property Laws · Law relating to Foreign Contribution Regulation

Lakshya Foundation holds an FCRA certificate and has opened an FCRA Account in the specified State Bank of India branch at New Delhi. It wishes to deposit its own membership fees collected in India into the same account for convenience. Under Section 17, is this permitted?

It is not permitted. Section 17 provides that no funds other than foreign contribution shall be received or deposited in an FCRA account, so domestic membership fees must go to a different account and cannot be mixed with foreign contribution.

  1. AYes, if the amount is less than the foreign contribution in the account
  2. BYes, if the bank manager consents in writing
  3. CNo, no funds other than foreign contribution may be received or deposited in such an accountCorrect
  4. DNo, unless the fees are first converted into foreign currency

Explanation

Section 17 states, in its third proviso, that no funds other than foreign contribution shall be received or deposited in any such FCRA account. Relative amounts or bank consent do not change this. Conversion into foreign currency is irrelevant.

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