HOW TO REGISTER ONLINE NGO UNDER FCRA & RECEIPT OF FOREIGN FUNDS THROUG...

HOW TO REGISTER ONLINE NGO/ TRUSTS UNDER FCRA OR TO TAKE PRIOR PERMISSION OR TO RENEW THE NGO/TRUST UNDER FCRA

 

For seeking FCRA services [Registration, Prior Permission and Renewal], the applicant must:-

·       Obtain DARPAN ID from Darpan portal of NITI AYOG

·       Upload documents electronically online

·       Pay application Fee electronically online  Have a definite cultural, economic, educational, religious or social programme

·       Have undertaken reasonable activity in its chosen field for the benefit of the society for which the foreign contribution is proposed to be utilized

·       Open a dedicated Foreign Contribution Bank Account

·       Intimate opening of additional dedicated Foreign Contribution Utilization Bank Account(s)

·       Place the audited statement of accounts electronically online on receipts and utilization of the foreign contribution, including income and expenditure statement, receipt and payment account and balance sheet for every financial year beginning on the first day of April within nine months of the closure of the Financial year in case of receipt of foreign funds.

·       Maintain a separate set of accounts and records, exclusively, for the foreign contribution received and utilized and for which the registration is sought

·       Apply to the Central Government six months before the date of expiry of certificate of registration, for its renewal

·       To intimate any change in the designated bank account / utilization bank account / name / address / aims / objectives / key members in respect of association granted registration / prior permission under the FCRA, 2010.

 

DEADLINE FOR OPENING THE DEDICATED BANK ACCOUNT OF NGO / TRUST WITH SBI PARLIMIENT STREET BRANCH

 

One of the queries is, if NGOs can receive funds in their present FCRA Designated Account (let’s call it ‘existing designated account’) from a foreign donor. Answer is unequivocal YES, that is the basic reason govt has allowed to open A/c by 31^st March 2021. Govt realized that it may take time to open bank a/c, and if no time slot is given, the whole Sector would come to stand still, since it would take time for thousands of NGOs to open bank account in SBI, Parliament Street.

 

RECEIPT OF FOREIGN FUNDS ONLY THROUGH SBI PARLIAMENT STREE BRANCH

 

Till the time bank account is opened, NGOs can receive funds in their existing designated account. However the day designated account is opened in SBI Parliament Street, from that day itself, no funds can be received in ‘existing designated account’. Also please note last day being 31^st March, all must open the bank account in SBI Parliament Street Branch before 31^st March 2021.

 

WHETHER ONE HAS TO TRANSFER THE FUNDS LYING IN THE EXISTING BANK ACCOUNT OF NGO/ TRUST TO SBI PARLIAMENTARY STREE BRANCH NEW DELHI?

There is some confusion relating to what will happen to funds lying in the ‘existing designated account’ once SBI Parliament street account is opened. Is it to be transferred to SBI Parliament Street Branch? Answer is NO, the money lying in present account should remain there and can be ‘utilized’ from there itself. S.17(1) second para clearly states that another bank account can be opened wherever NGO wants to ‘keep or utilise’ funds. Thus money lying in your earlier designated bank account need not be transferred to SBI Parliament Street Branch. In any case money to be rec’d in SBI Parliament Street should be only ‘for the purposes of remittances of Foreign Contribution’. SBI Parliament Street Branch is not likely to accept any funds which are not coming from outside India.