Page 49 - Banking Finance May 2022

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Y A person who has been convicted more than once for Now let us see the various Amendments:
offence relating to acceptance or utilisation of FC is Y Inclusion of Public Servants, Judge, Government servant
prohibited from accepting any FC for a period of 5 years. or employee of any Corporation or any other body
Y Any person convicted of an FC offence relating to any controlled or owned by the Government in the list of
article, currency or security would also be liable to fine individuals/entities prohibited from receiving foreign
up to 5 times the value of the article or currency or Rs. contribution
1,000 whichever is more, if article or currency is not Y No person who
available for confiscation. (a) is registered and granted a certificate or has
Y Compounding of certain offences is now possible. obtained prior permission under this Act; and
(b) receives any foreign contribution,
Custody of FC when certificate of shall transfer such foreign contribution to any other
registration is cancelled person.".
Y If certificate of registration is cancelled then unutilised Y Reduction of cap on administrative expenses spending
FC lying in the designated bank account shall vest with reduced from 50% to 20%.
concerned banking authority till Central Government Y The Amendment provides that the Government may
issues further direction. conduct a scrutiny of the organization at the time of
Y If person to whom the certificate is granted ceases to the renewal of the registration.
exist or becomes defunct then, the assets of such person Y Every person who has been granted certificate or prior
shall be disposed of in accordance with the provisions permission under section 12 shall receive foreign
of law for the time being in force under which the person contribution only in an account designated as "FCRA
was registered or incorporated. Account" by the bank, which shall be opened by him

for the purpose of remittances of foreign contribution
FC in Excess of Rupees One Crore in a in such branch of the State Bank of India at New Delhi.
Financial Year Y The FCRA provides for criminal penalties for violations

Any person in receipt of FC in excess of Rs. one crore in a of its provisions which attracts a maximum penalty of
financial year, shall maintain summary data of receipts and imprisonment up to five years, along with monetary
utilisation of FC pertaining to the year of receipt and the penalties which may go up to five times the value of
subsequent year in the public domain. The Central the article or the currency. It also provides for a penalty
Government shall also display such summary data through for assisting or accepting foreign contribution in
its website. violation of the FCRA. The NGO/entity receiving the

The Foreign Contribution (Regulation)

Amendment Act, 2020
The Government has further amended the FCRA, to further
regulate the laws on foreign contribution in India. The
Foreign Contribution (Regulation) Amendment Act, 2020 has
been notified and has come into force on September 29 ,
2020. Given the strict enforcement and stringent penalties
(including criminal consequences) for violations of the FCRA,
it is critical for not for profit organizations to be aware of
and clearly understand the ambit of and implications of the
FCRA amendments brought about by the 2020
Amendments.

BANKING FINANCE | MAY | 2022 | 49