Use of FCRA funds remaining in FC accounts after FCRA certificate has been suspended / cancelled or deemed to Cease
Socio Research & Reform Foundation
FCRA
Use of FCRA funds remaining in FC accounts after FCRA certificate has been suspended / cancelled or deemed to Cease
MHA has come out with a clarification through a Public Notice dt 21-1-2025, that once a FCRA registration is suspended or cancelled, they cannot use FCRA funds lying either in Designated Bank account or Utilization bank Accounts. While in case of suspension / cancellation, FCRA authorities intimate SBI of the same, however no intimation goes to bankers who are maintaining Utilisation Accounts. Therefore, such bankers are not aware of the of suspension / cancellation of FCRA registration. At times, NPOs continue to use funds lying in these Utilisation bank accounts, even after FCRA has been suspended or cancelled. FCRA Dept has now clarified that such use is violative of FCRA provisions, and concerned NPOs could face penal action for the same.
The Dept has also clarified that any NPO, which fails to apply for renewal before expiry of registration, their FCRA registration falls under the….(click to read more)
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Ramanuj Maurya
Coordinator
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