Page 47 - Banking Finance May 2022

ARTICLE

e. The Ministry of Affairs has introduced a new facility Total Ban on Acceptance of Foreign
"FCRA - Online" to facilitate associations to file their
applications for registration and submit statutory forms Contribution & Hospitality
online. Refer fcraonline.nic.in. Ban relating to FC applies to
a. Candidate for election;
Accounts & Audit b. Correspondent, columnist, cartoonist, editor, owner,
Maintenance of accounts printer or publisher of a registered newspaper;
a. Accounts to be maintained on yearly basis from April to c. Government servant, judge or employee of any
March. Government corporation;
b. Every person receiving FC shall maintain an account of d. Member of any Legislature;
any FC received and its utilisation.
e. Political party or office-bearer thereof
i. Income & expenditure statement, receipt &
f. Organisation of political nature;
payment account and balance sheet are to be
prepared exclusively in respect of the FC received. g. Association or company engaged in production or
ii. Details in Form FC 7 to be maintained where FC broadcast of audio news or audio visual news or current
affairs programmes through any electronic mode or
relates to articles.
form;
iii. Details in Form FC 8 to be maintained where FC
h. Correspondent or columnist, cartoonist, editor, owner
relates to foreign security.
of the above association or company.
Designated bank account
a. FCRA funds can be received and held only in the Ban does not apply to FC received by way of:
designated bank account. a. Salary, wages or other remuneration, or
b. Besides the designated bank account, operational b. Payment in ordinary course of international trade or
accounts in one or more banks may be opened for the commerce, or
limited purpose of utilising the foreign contribution. Such c. Payment received by an agent of a foreign source in
accounts are commonly referred to as field accounts.
relation to any transaction made by such foreign source
In such cases, intimation on plain paper shall be with the State or Central Government, or
furnished to the Secretary, Ministry of Home Affairs.
d. Gift or presentation made to a member of any Indian
c. Designated or field accounts are strictly prohibited from Delegation, provided the same is in conformity with the
receiving non-FC funds.
rules framed by the Central Government in this regard,
d. Interest earned out of FC funds should be deposited in or
designated bank account. e. Gift from relative. Gifts exceeding Rs. 1,00,000 per

Audit annum requires intimation to the Central Government
in Form FC-1 within 30 days from date of receipt of such
a. Income & Expenditure account, Receipts & Payment
gift, or
account and Balance Sheet, with report in Form FC 6
duly certified by a CA to be submitted to Home Ministry f. Any scholarship, stipend or any payment of like nature,
before 31st of December immediately following the end or
of financial year. g. Remittance received in ordinary course of business
b. Form FC 6 to give details of each contribution received, through official channels.
the source, manner of receipt, purpose of receipt and
manner of utilisation. And Foreign Hospitality
c. Even Nil report has to be submitted. a. Member of Legislature or office-bearer of political party

BANKING FINANCE | MAY | 2022 | 47