Govt amends FCRA rules, allows relatives to send ₹10L

NEW DELHI: The Centre has amended the rules of the Foreign Contribution Regulation Act (FCRA), allowing relatives to send more money under foreign funding and giving more time to organisations to inform the government about bank accounts for utilisation of funds received under the “registration” or “prior permission” category.

The government has also removed a provision wherein an organisation/individual receiving foreign funds had to declare such contributions every quarter on its official website.

The new rules — Foreign Contribution (Regulation) Amendment Rules, 2022 — were notified by the ministry of home affairs (MHA) through a gazette notification on Friday.

“In the Foreign Contribution (Regulation) Rules, 2011, in rule 6, for the words “one lakh rupees”, the words “ten lakh rupees” shall be substituted; and for the words “thirty days”, the words “three months” shall be substituted,” the notification stated.

Rule 6 deals with intimation of receiving foreign funds from relatives. It stated earlier that “any person receiving foreign contribution in excess of one lakh rupees or equivalent thereto in a financial year from any of his relatives shall inform the Central government (details of funds) within 30 days from the receipt of such contribution”. The amended rule now allows relatives to send up to ₹10 lakh without informing the government. If the amount exceeds, the individuals will have three months to inform the government against 30 days earlier.

Similarly, making changes in rule 9, which deals with application of obtaining ‘registration’ or ‘prior permission’ under the FCRA to receive funds, the amended rules give individuals and organisations 45 days to inform the MHA about bank account(s) that are to be used for utilisation of such funds.