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RBI updates rules for foreign donations via NEFT, RTGS. Details here
RBI has made necessary changes in NEFT and RTGS systems for Foreign Contribution (Regulation) Act (FCRA) related transactions
Mumbai: The Reserve Bank of India (RBI) has asked member banks participating in payment systems to tweak their core banking/middleware solutions to capture the requisite details while forwarding the foreign donations through NEFT and RTGS systems to State Bank of India(SBI).
RBI has made necessary changes in NEFT and RTGS systems for Foreign Contribution (Regulation) Act (FCRA) related transactions.
"...necessary changes have been introduced in NEFT and RTGS systems," RBI said. The instructions will be effective from March 15, 2023.
In a circular named, ‘Introduction of Foreign Contribution (Regulation) Act (FCRA) related transaction code in NEFT and RTGS Systems’ the central bank noted that under the FCRA, foreign contributions must be received only in the "FCRA account" of State Bank of India (SBI), New Delhi Main Branch (NDMB).
The contributions to the FCRA account are received directly from foreign banks through SWIFT and from Indian intermediary banks through NEFT and RTGS systems.
In a circular, the RBI said in terms of extant requirements of the Ministry of Home Affairs (MHA), the donor details such as name, address, country of origin, amount, currency, and purpose of remittance are required to be captured in such transactions and SBI is required to report the same to MHA on daily basis.
These instructions are issued under Section 10 (2) read with Section 18 of Payment and Settlement Systems Act, 2007 (Act 51 of 2007).
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First Published:17 Feb 2023, 05:48 AM IST
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