Receipt of Foreign Contribution under FC(R) Act : UCBs - RBI - Reserve Bank of India
Receipt of Foreign Contribution under FC(R) Act : UCBs
RBI/2004-05/329 January 05, 2005 The Chief Executive Officers of Dear Sir/Madam, Receipt of foreign contributions by Associations/organizations in India Under Foreign Contribution(Regulation) Act, 1976 Please refer to our circular UBD.No.BSD-I/PCB/18/12.05.00/98-99 dated January 30, 1999 advising banks to ensure compliance with the various provisions of Foreign Contribution (Regulation) Act, 1976 in connection with the foreign contribution received by associations/organizations. The banks, in particular, are required to ensure that prior permission of Government of India has been obtained by the recipients of donations/contributions before actually affording credits to their bank accounts. 2. In view of the severe Tsunami that affected coastal areas in Andaman & Nicobar islands, Andhra Pradesh, Tamilnadu, Pondicherry and Kerala, Central Government, Ministry of Home Affairs vide its notification No.II/21022/11(19)2004-FCRA I dated December 30, 2004 (copy enclosed) have exempted, with immediate effect and upto 31st March 2005 all associations (other than a political party) having a definite cultural, economic, educational , religious or social programme, from the provisions of section 6(1-A) of the Act ibid to accept foreign contribution, in cash and kind, for providing relief to the Tsunami victims without obtaining formal approval of the Central Government, subject to the following conditions :-
3. You are requested to issue necessary instructions immediately to your branches in the matter. 4. Please acknowledge receipt to the concerned Regional Office of RBI. Yours faithfully, (N.S.Vishwanathan) Government of India Lok Nayak Bhavan Dated the 30th December, 2004 ORDER Whereas no association having definite cultural, economic, educational, religious or social programme shall accept foreign contribution unless such association registers itself with the Central Government or obtains the prior permission of the Central Government under section 6 of the Foreign Contribution (Regulation) Act, 1976, hereinafter referred to as the 'Act'. 2. Whereas in the aftermath of the severe Tsunami affected coastal areas in Andaman & Nicobar islands, Andhra Pradesh, Tamilnadu, Pondicherry and Kerala, a number of foreign sources have expressed a desire to send contributions, in cash and kind, to various agencies working in these areas and in other parts of the country to assist the victims of the Tsunami. 3. Whereas the immediate arrival of this assistance is of paramount importance to provide succour to the affected persons and it is in the public interest to dispense with the procedure prescribed for the acceptance of foreign contribution in the said Act, as a special case for this purpose only. 4. Now, Therefore, in exercise of the powers conferred by Section 31 of the said Act, the Central Government hereby exempts, with immediate effect and upto 31st March 2005, all association (other than a political party) having a definite cultural, economic, education, religious or social programme, from the provisions of section 6(1-A) of the Act to accept foreign contribution, in cash and kind, for providing relief to the Tsunami victims without obtaining a formal approval of the Central Government, subject to the following conditions -
5. The forms can be downloaded from the Ministry of Home Affairs Website http://mha.nic.in/fore.htm. Sd/- (D.S.Mishra)
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