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

Under Section 17, Navjyoti Society has an FCRA Account in the specified SBI branch at New Delhi. It wants to use the money through other banks. Which course is expressly allowed by the Act?

The society may open another FCRA Account in any scheduled bank of its choice to keep or utilise foreign contribution already received in its FCRA Account at the specified State Bank of India branch in New Delhi, as the first proviso to Section 17(1) allows.

  1. AOpen another FCRA Account in a scheduled bank of its choice to keep or use the contribution received from the New Delhi accountCorrect
  2. BReceive foreign remittances directly into any scheduled bank account of its choice, bypassing the New Delhi branch
  3. CTransfer the contribution to the personal account of its chairperson for utilisation
  4. DOpen accounts only in the New Delhi SBI branch and nowhere else

Explanation

The first proviso to Section 17(1) lets the person open another FCRA Account in any scheduled bank of choice for keeping or utilising contribution received from the New Delhi account. Direct receipt must be only in the specified SBI account. Nothing permits transfer to personal accounts, and the restriction to New Delhi is not absolute.

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