Foreign Contribution (Regulation) Act, 2010 Receipt of foreign contribution by Individuals / NGOs / Organisations from certain donors – Primary (Urban) Co-operative Banks (UCBs)/State and Central Co-operative Banks

January 15, 2015

The Chief Executive Officer,
All Primary (Urban) Co-operative Banks/
State and Central Co-operative Banks (StCBs / CCBs)

Madam/Dear Sir,

Foreign Contribution (Regulation) Act, 2010 Receipt of foreign contribution by Individuals / NGOs / Organisations from certain donors – Primary (Urban) Co-operative Banks (UCBs)/State and Central Co-operative Banks

Under Section 46 of the Foreign Contributions (Regulation) Act, 2010, Ministry of Home Affairs (MHA), Government of India forwards a list of donor agencies which are placed under prior permission category and requests Reserve Bank of India to instruct all banks to ensure that any funds flow from these donor agencies to any individual/NGO/organization, should be brought to the notice of the Ministry of Home Affairs so that funds are allowed to be credited to the accounts of the recipient individual/ NGOs/ association only after clearance from the Foreigners’ Division, FCRA Wing, Ministry of Home Affairs(MHA), Government of India, New Delhi. Further, Government organisations can avail of foreign funding only with the clearance of Department of Economic Affairs and any instance of Government organisation receiving funds directly from the above mentioned donor agencies may be withheld and brought to the notice of MHA.

2. In this regard, a couple of instances of some banks crediting fund flow from one of the foreign donor agencies, whose name appear in the Annex to this circular, without obtaining prior permission of the Ministry, have been noticed, which is a matter of serious concern.

3. A list of such agencies placed in the prior permission category is attached herewith. All banks are accordingly advised to ensure meticulous compliance to the directions issued by the Government as mentioned in the paragraph 1 above.

4. These instructions are issued under Section 35 A of the Banking Regulation Act, 1949 (AACS) and any contravention or non-compliance thereof will attract penalties under the Act.

5. Please acknowledge receipt of this circular to our Regional Office concerned.

Yours faithfully,

(P. K. Arora)
General Manager

Annex

Foreign Donor Agencies placed in Prior Permission Category