Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
The FCRA was enacted with the objective of creating a transparent mechanism for individuals and organizations through the E-governance of FCRA-related activities and discouraging any detrimental activities against national interest. In furtherance of this objective, the RBI, introduced FCRA-related transaction code in NEFT and RTGS Systems on 16th February vide notification RBI/2022-23/178. The present article shall discuss the details of the notification.
FCRA is an acronym for Foreign Contribution Regulation Act. It regulates the receipt of foreign contributions or aid from outside India to Indian territories; it is essential to ensure that such assistance doesn’t affect politics or any other situation in India. The compliance of this act is usually complex as it focuses on the genuineness of the donations. This law is enforced by the Ministry of Home Affairs, Government of India which has a separate section to ensure compliance with the Foreign Funding Registration.
The technical Details related to FCRA Transactions in NEFT and RTGS Systems are enumerated below –
Originating banks must select the following mandatory fields of NEFT / RTGS systems at the time of remitting foreign donations to the FCRA account at SBI:
Originating banks must pass on donor details in the following formats of ‘Sender to remitter information’ (field no. 7495) of NEFT and ‘RmtInf’ tag of RTGS:
The Apex Bank has issued these instructions u/s 10 (2) r/w Section 18 of the Payment and Settlement Systems Act, 2007. The notification so issued can simply the receipt of foreign contributions and ensure the genuineness of the same due to the contributions being received from a safe, secure and trusted payment method like RTGS / NEFT
Also Read: Real-Time Gross Settlement System (RTGS)
On June 08, 2023, the Reserve Bank of India issued guidelines on default loss guarantee on thei...
The gaming industry in India has made a remarkable transformation in iGaming in the year 2023;...
A company needs cost-effective financial management for overall survival and growth. This invol...
Automotive industry audit checklist as the process audits is made simpler and generates better...
An Automotive Dealerships Audit Checklist helps in an examination and review of aspects related...
Are you human?: 8 + 6 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Getting permission for Foreign contribution in an NFO is strictly regulated and in recent years, large no of the ol...
21 Jan, 2021
Recently the Ministry of Home Affairs has been in news for cancelling the FCRA Registration of various Non-governme...
06 Jan, 2022