Associations whose FCRA registration expired can pay penalty and fees from FCRA account

Associations whose FCRA registration expired can pay compounding penalty and fees from FCRA bank account 

FCRA allows association(s) whose FCRA registration validity has expired, to pay the compounding penalty and fees from the FCRA bank account

As per Rule 12(5) of the Foreign Contribution (Regulation) Rules 2011 (FCRR, 2011), no person whose certificate of registration has ceased to exist shall either receive or utilise foreign contribution until the certificate is renewed. Accordingly, such NGO/associations whose registration has ceased after expiry of validity period, are not able to make payment of compounding and fees from the FCRA bank account.

In view of the above, the Home Ministry, in exercise of the powers conferred under section 50 of the FCRA 2010, has now allowed association(s) whose FCRA registration validity has expired, to pay the compounding penalty and fees from the FCRA bank account held with State Bank of India, New Delhi Main Branch, through FCRA online portal by introducing “SBI Branch Payment”. However, any other receipt/utilisation from FCRA Bank account, during this period, would amount to the violation of FCRA 2010 and liable for penal action.

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