The Reserve Bank of India (RBI) has introduced changes to NEFT as well as RTGS for transactions relating to Foreign Contribution Act. The RBI is taking this step in response to it was a request by the Ministry of Home Affairs. Asking SBI to provide reports daily on foreign donors, as well as the money that is sent from overseas. According to the Foreign Contribution Act (FCRA). It is required that foreign donations be transferred into SBI’s FCRA account of the SBI’s New Delhi main branch only.
The contributions
to FCRA accounts of foreign banks are transferred via SWIFT (Society for International Interbank Financial Telecommunication). As well as from Indian banks using NEFT or RTGS. In an announcement, the RBI declared that in reference to the existing rules. That is imposed by the Ministry of Home Affairs (MAH). The entire information such as the name of the person who made the donation address, address, source country, the amount of money, currency, and the purpose of the transfer must be recorded in these transactions.
The new rules will go into effect on the 15th of March.
SBI must provide details about that to Home Ministry on a daily basis. The central bank announced that “Necessary adjustments have been made to both the NEFT along with RTGS system.” The directives will go into effect on March 15th, 2023. RBI has directed banks to make the necessary adjustments to ensure they have the correct information while sending foreign money to SBI via NEFT as well as RTGS systems.
Since the Modi government was elected into power,
regulations regarding FCRA were made more stringent. As a result, FCRA registrations of about 200 non-governmental organizations (NGOs) were also canceled for violating various rules of the law.
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