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Question of the Week

Question :
Can foreign contribution be mixed with local receipts?
Answer :
No, foreign contribution cannot be deposited or utilized from the bank account being used for domestic funds.
Question :
Could an association whose registration has been cancelled in terms of FCRA, 2010 again apply for grant of registration or prior permission?
Answer :
Yes, however the association can apply for registration or prior permission only after 3 years from the date of cancellation of its registration. As per the provision of FC law, any person whose certificate has been cancelled under the law shall not be eligible for registration or grant of prior permission for a period of three years from the date of cancellation of such certificate.
Question :
Does it require any approval of MHA to withdraw money from the designated FC bank account and redeposit the unutilized portion thereof back to the FC bank account?
Answer :
No, there is no need to take any approval of MHA for withdrawal of money from the designated FC bank account and redeposit the unutilized portion thereof back to the FC bank account. This is due to that normal and regular banking activity is not regulated under FCRA, 2010. The basic point to remember is that no fund other than FC fund should be deposited in the designated FC bank account and also that the local fund and FC fund should not be mixed up under any circumstances.
Question :
An association changes the signatory of the cheque books etc. in respect of its designated FC bank account. Does it require approval of MHA ?
Answer :
No, MHA is not concerned with such internal procedural issues of an association. Consequently, there is no need to take approval of MHA.
Question :
What is the procedure for renewal of FCRA registration?
Answer :
In terms of rules 12(2) of FCRR, 2011, an association registered under FCRA should apply in form FC-5 for renewal of its registration 6 months before the date of expiry of the certificate of registration. Further, the association implementing an ongoing multiyear projects should apply for renewal 12 months before the date of expiry of their registration.