Rbi Master Circular

Only available on StudyMode
  • Download(s) : 26
  • Published : August 1, 2012
Open Document
Text Preview
Date: Jul 02, 2012
Guidelines issued under Section 36(1)(a) of the Banking Regulation Act, 1949 - Implementation of the provisions of Foreign Contribution (Regulation) Act, 2010 RBI/2012-13/44
DBOD.AML.BC.No.12/14.08.001/ 2012-13
July 2, 2012
Ashadha 11, 1934 (Saka)
The Chairmen/Chief Executive Officers of
All Scheduled Commercial Banks (excluding RRBs)
Dear Sir,
Guidelines issued under Section 36(1)(a) of the Banking Regulation Act, 1949 - Implementation of the provisions of Foreign Contribution (Regulation) Act, 2010 Please refer to our Master Circular DBOD.AML.BC No.1/14.08.001/2010–11 dated July 01, 2010 consolidating instructions/ guidelines issued to banks on Foreign Contribution (Regulation) Act, 1976 – Obligations of Banks in Regulating Receipt of Foreign Contributions by Associations / Organizations in India. 2. With the coming into force of Foreign Contribution (Regulation) Act, 2010 and Foreign Contribution (Regulation) Rules, 2011, Foreign Contribution (Regulation) Act, 1976 stands repealed. 3. This Master Circular is a consolidation of the Reserve Bank’s guidance on Foreign Contribution (Regulation) Act, 2010 and Foreign Contribution (Regulation) Rules, 2011 issued to banks up to June 30, 2012. 4. The Master Circular has been placed on RBI website: http://www.rbi.org.in Yours faithfully,

(Sudha Damodar)
Chief General Manager
________________________________________
Master Circular on Implementation of the Provisions of
Foreign Contribution (Regulation) Act, 2010
1General

2Guidelines

3Salient Features of the FCRA, 2010

3.1Introduction

3.2Prohibition on Acceptance of Foreign Contribution

3.3Restrictions on Acceptance of Foreign Hospitality

3.5Registration for Acceptance of Foreign Contribution

3.6Prohibitions and Restrictions on Receipt, Transfer, Utilization etc. of Foreign Contribution

3.7Foreign Contribution to be Received through a Scheduled Bank

3.8Maintenance of Accounts and Disposal of Assets

3.9Powers of Inspections and Seizure

3.10Miscellaneous Issues

4Rules Framed under the Act and Reporting by Banks

1. General
1.1 Government of India, Ministry of Home Affairs has published a Notification S.O. 909 (E) dated the 29th April, 2011, in the Official Gazette bringing into force the Foreign Contribution (Regulation) Act, 2010 (“the Act”) with effect from May 1, 2011. A Gazette Notification G.S.R. 349 (E) dated the 29th April, 2011, has also been issued notifying the Foreign Contribution (Regulation) Rules, 2011 (“the Rules”) made under Section 48 of the Act. The Rules have come into force simultaneously with the Act. With the coming into force of the Act, Foreign Contribution (Regulation) Act, 1976 stands repealed. Banks are, therefore, required to ensure that the provisions of the new Act and the Rules made there under are fully complied with. Accordingly, Reserve bank, considering the public interest and on being satisfied that it was necessary so to do, in exercise of the powers conferred by Clause (a) of sub-section (1) of Section 36 of the Banking Regulation Act, 1949 (Act 10 of 1949) and of all the powers enabling it in this behalf, issued a guidance on Foreign Contribution (Regulation) Act, 2010 and Foreign Contribution (Regulation) Rules, 2011 , for compliance of all scheduled commercial banks (excluding Regional Rural Banks). 1.2 The salient features of the new Act are indicated below. This Master Circular is intended only to serve as a guide to the banks for carrying out their obligations under the Act and the Rules made thereunder. In case of doubt, banks should make it a point to refer to the text of the Act and the Rules, and if found necessary, proper legal advice should be taken. 2. Guidelines

2.1 Foreign Contribution (Regulation) Act, 2010 prohibits certain classes of persons from receiving ‘foreign contribution’. It also restricts certain classes of persons from accepting foreign hospitality while visiting any country or...
tracking img