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FCRA Update: Relaxation in applicability of provisions of Foreign Contribution (Regulation) Act
FCRA Update: Relaxation in applicability of provisions of Foreign Contribution (Regulation) Act

May 20, 2021

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The Ministry of Home Affairs (MHA), vide issue of Public Notice No. II/21022/36(58)/2021-FCRA-II dated May 18, 2021, has extended the validity of registration certificate issued under Foreign Contribution (Regulation) Act, 2010 (FCRA Act) and expiring during the period between September 29, 2020 and September 30, 2021 up to September 30, 2021.

Further, vide issue of Public Notice No. 11/21022/36(58)/2021-FCRA-III dated May 18, 2021, MHA has also allowed existing FCRA account holders to open FCRA account in the New Delhi Main Branch  of the State Bank of India (SBI) before June 30, 2021. (Earlier, the deadline to open FCRA account was March 31, 2021).

We welcome these extensions announced by MHA as this should help minimise disruptions in ongoing Covid-19 relief efforts by the Non-Governmental Organisations (NGOs).

On a related note, NASSCOM made a representation to MHA on May 6, 2021 requesting them to temporarily relax or defer the amended provisions of the Foreign Contribution Regulation Amendment Act, 2020 (Amended FCRA Act) which does not allow transfer of FCRA funds between two FCRA registered entities. Deferment of these provisions will help FCRA registered entities to receive and augment fresh donation/ financial help/ medical equipment from across the globe, to provide necessary support and enable such last mile big and small NGOs to help the centre and state governments to fight against unprecedented nationwide public health emergency. The will also help bigger NGOs in supporting and collaborating with smaller NGOs and organisations in providing better treatment and healthcare facilities to Covid-19 patients in rural areas, where the health infrastructure is weaker as compared to urban areas.

In this regard, we have requested MHA to provide the above relaxations /deferment in the Amended FCRA Act, till the situation improves within the country or for a period not less than next six months or so.

We will continue to pursue this request with MHA. We will keep you posted on further developments in this regard.


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Tejasvi

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