Page 45 - Banking Finance May 2022

ARTICLE

FOREIGN

CONTRIBUTION

(REGULATION)

AMENDMENT ACT

2020, GUIDELINES

AND BANK

PROCEDURES

he Government of India notified FCRA contributions in India. The Foreign Contribution (Regulation)
2020(Amendment) and it came into effect from Act, 2010 (FCRA), along with the Foreign Contribution
29th September 2020 and has given strict (Regulation) Rules, 2011 (FCRR) repealed the Foreign
Tenforcement and stringent penalties (including Contribution (Regulation) Act, 1976. The FCRA permitted
criminal consequences) for violations of the FCRA. Let us registered entities to receive foreign contribution, but
understand the rules for foreign contribution from its subject to strict conditions and disclosure requirements.
inception.
The Foreign Contribution (Regulation)
Foreign Contributions regulation in India goes back to 1976, Act, 2010 (FCRA):
when the Foreign Contribution (Regulation) Act, 1976 was
The Effective Date of The Foreign Contribution (Regulation)
enacted to regulate the inflow of foreign funds to voluntary
Act, 2010 and the Foreign Contribution (Regulation) Rules,
organizations set up for various socio-economic, religious or
cultural objects. While the 1976 Act loosely regulated 2011 are applicable from 1st May,2011. It replaces Foreign
Contribution (Regulation) Act, 1976.
foreign funding to such organizations, in 2010 it was
repealed in favour of a wider and stricter law on foreign
The Object is
About the author a. To regulate the acceptance and utilisation of foreign
contribution (FC) or foreign hospitality (FH) by certain
K. G. Sridhar individuals or associations or companies.
Chief Manager (Faculty-Forex) b. To prohibit acceptance and utilisation of FC or FH for
Union Bank of India,
Staff College, Kalkee, Bangalore any activities detrimental to the national interest and
matters connected or incidental thereto.

BANKING FINANCE | MAY | 2022 | 45