The Foreign Contribution (Regulation) Act, 1976 (FCRA, 1976) casts certain obligation on banks in regard to acceptance of foreign inward remittances for onward credit to the accounts of associations/organizations in India.
The Central Government, in a notice dated the 21st of December2017, directed all Non-Governmental Organizations (NGOs), business entities and individuals who are covered under the ambit of FCRA 2010 to open their bank accounts with any of the banks which has integrated its system with the Public Financial Management System (PMFS).
It also notified that the process must be completed within a month of the publication of the notice. In this article, we look at the requirement below posted by the Government for FCRA bank account opening in detail.
- All extant KYC guidelines applicable to opening Current Accounts shall be adhered to.
- In addition, approval/certificate from Home Ministry for receiving the foreign contributions through new FCRA account.
Note : FCRA can be opened as both CA and SA basis the customer type.