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

Shanti Seva Samiti, a registered society holding an FCRA certificate under Section 12, wants to receive a foreign donation. Its treasurer proposes to have it credited to the society's existing current account at a local scheduled bank in Jaipur, which also holds domestic donations. Under Section 17, what is the correct position?

The society must receive foreign contribution only in an FCRA Account opened at the specified State Bank of India branch in New Delhi, and no funds other than foreign contribution may be deposited in it. The mixed Jaipur current account is not permitted for receipt.

  1. AForeign contribution must be received only in an FCRA Account in the specified State Bank of India branch at New Delhi, and no other funds may be deposited in itCorrect
  2. BIt may be received in any scheduled bank account, if the account is old enough
  3. CIt may be received in the Jaipur account if domestic funds are kept in a separate ledger
  4. DIt may be received in any scheduled bank, provided the bank reports it later

Explanation

Section 17(1) requires a certificate holder to receive foreign contribution only in an account designated as FCRA Account at the specified SBI branch in New Delhi. The proviso bars depositing any funds other than foreign contribution in such an account. A mixed local current account therefore fails both requirements.

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