Page 50 - Banking Finance May 2022

ARTICLE

funds and its officers in charge can be prosecuted for 3. Receipt of Foreign Contribution:
such offences. i) Existing FCRA Account holders:
Existing FCRA account holders may receive the foreign
Guidelines to be followed in Banks by contribution in their designated FCRA account
maintained with their Bankers, till the date he opens
FCRA Account Holders: FCRA account in SBI New Delhi Main Branch or
1. Existing Account Holders of FCRA: 30.06.2021, whichever is earlier.
All the existing FCRA account holders who have valid FCRA ii) Clients having valid FCRA Registration certificate but not
registration certificate (as on date) given by Ministry of maintaining FCRA account presently with the Bank:
Home Affairs, shall open one more FCRA account in State All such clients have to necessarily receive foreign
Bank of India, New Delhi Main Branch(NDMB) 11, Sansad contribution in their account with SBI. Thereafter they
Marg, New Delhi-110001 before 31st March 2021, which may transfer the same to FCRA account opened with
was extended to 31st June 2021. This account shall be used their Bank.
for purpose of receiving Foreign Contribution from the date
4. Other Guidelines:
of opening of this account. The existing account of the client
can continue, but will not be eligible to receive foreign Y Funds should not be transferred to the personal
currency from the date of opening of the account in SBI, accounts of the Directors for the personal benefit, from
the FCRA designated account.
New Delhi Main Branch or 31st June 2021, whichever is
earlier. Y Outward Foreign remittances are not allowed from all
such accounts, as the foreign contribution are to be
2. New Accounts for clients having valid FCRA utilised within the territory of India.
Registration Certificate: Y Cash and Local funds credits are not allowed into
designated FCRA accounts except from linked SBI FCRA
All the clients who are not maintaining FCRA accounts with
account.
any Bank but who have valid FCRA registration certificate
(as on date) given by MHA, shall open one FCRA account Y Funds should not be transferred from the designated
with SBI, NDMR 11, Sansad Marg, New Delhi before 31st FCRA account to any other accounts other than the
purposes mentioned in their aims & objects.
June 2021, for receipt of Foreign Contribution. After opening
of this account, they may open another FCRA account with Y Reporting to the specified authority should be done as
respective Bank for the purpose of keeping or utilizing the per MHA public noticed dated 13.10.2020 or future
foreign contribution which has been received from his instructions (if any) in this regard.
aforesaid FCRA account in SBI.After opening the FCRA
accounts in SBI, the FCRA account in respective Bank should Reference:
necessarily be linked with the SBI account and the payments X Fcraonline.nic.in
should necessarily be received from that account only. X Bcasonline.org. T

Auditors may have to explain why they quit
The government is set to tighten norms for auditors and independent directors. The move is part of a fresh overhaul
of the Companies Act, which is in the works.
Auditors may not be able to get away by simply resigning from assignments when the going gets tough. The govern-
ment is looking to mandate a report by the auditors to the shareholders, which will list the reasons for their resig-
nation.
Besides, rules are proposed to be tightened for independent directors, who will have to step down from board on
completion of a specified number of years. It will come with the stipulation that an individual's term as an additional
director will be added to the tenure as an independent director so that board members do not get entrenched in
the company.

50 | 2022 | MAY | BANKING FINANCE