Important FCRA Amendments (Applicable from 1st July 2022)

The Ministry of Home Affairs issued a notification vide G.S.R. 506(E) dated 1st July, 2022 and amended certain rules of the Foreign Contribution (Regulation) Rules, 2011. The main amendments are discussed as under:

1. Increase the monetary limit of Foreign Contribution received from relative - Rule 6 of the FC Rules

Earlier, any person receiving foreign contribution in excess of Rs. 1 Lakhs or equivalent thereto in a financial year from any of his relatives shall inform the Central Government regarding the details of the foreign contribution received by him in electronic form in Form FC-1 within 30 days from the date of receipt of such contribution.

Now by virtue of the amendment, the monetary limit of Rs. 1 Lakh increased to Rs. 10 Lakhs and the time limit for reporting of such FC also increased from 15 days to 45 days.

2. Increase the limit for intimation of the Bank Account - Rule 9(1)(e) & 9(2)(e) of the FC Rules

Earlier, the person may open one or more accounts in one or more banks for the purpose of utilising the foreign contribution after it has been received and, in all such cases, intimation in electronic form in Form FC-6D shall be furnished to the Secretary, MHA, New Delhi within 15 days of the opening of any account.

In a same way, a person seeking prior permission under this rule may open one or more accounts in one or more banks for the purpose of utilising the foreign contribution after it has been received and in all such cases intimation in electronic form in Form FC-6D shall be furnished to the Secretary, Ministry of Home Affairs, New Delhi within 15 days of the opening of any account.

Now by virtue of the amendment, the limit for intimation for the both rules increased from 15 days to 45 days.

3. Declaration of Quarterly Foreign Contribution on the official website is no longer required - Rule 13(b)

Earlier, a person receiving foreign contribution in a quarter of the financial year shall place details of foreign contribution received on its official website or on the website as specified by the Central Government within fifteen days following the last day of the quarter in which it has been received clearly indicating the details of donors, amount received and date of receipt.

Now, the said clause has been omitted and consequently, the requirement to place details of foreign contribution received in a quarter on its official website is no longer required.

However, it may kindly be noted that the placing of the annual audited accounts on official website of the NGO is still mandatory

4. Other Miscellaneous Amendments

Earlier, any change in the bank account, name, address, aim, objectives or key members were required to be intimated with 15 days from the date of such changes, however, by the amendment, the said time limit are also increased to 45 days. (Rule 17A)

Further, Rule 20 provides that the application for revision of order passed by the competent authority under section 32 of the FCRA Act shall be made on plain paper, however, by amendment, the Government may prescribe form and manner for making such revision application.