DBOD.No. BP.BC.19/21.01.023/98
March 10, 1998
Phalguna 19, 1919 (Saka)
The Chairmen and Managing
Directors/ Chief Executives of
All Commercial Banks
Dear Sir,
Receipt of foreign
Please refer to our letters Nos. DBOD. BP.BC. 16/21.01.023/96 dated 16th
February 1996 & DBOD. BP. 2777/21.01.023/97 dated 23rd May 1997 advising
banks that foreign contributions should not be credited to the Accounts of
Associations/Organisations unless they have obtained registration or prior
permission under FC(R) Act, 1976. The banks were also advised to submit a
Return furnishing details of the foreign contributions credited to the
Accounts of Organisations/Associations on a half-yearly basis to Government
of India, Ministry of Home Affairs, within a period of two months from the
closure of the half-yearly period.
2. It has been brought to our
notice by Government of India that in spite of repeated instructions issued
to banks by the RBI, some of the banks have credited the foreign
contributions to the Accounts of Organisations/Associations without the
requisite permission of the Central Government. Also the requirement of
filing half yearly Returns is not being strictly adhered to by most of the
banks. In the absence of these Returns, the Government find it very difficult
to keep a watch on the inflow of foreign contributions, in violation of the
provisions of the said Act.
3. We, therefore, reiterate the
instructions contained in our abovementioned letters and advise that the
banks should scrupulously follow these instructions. While granting
registration or prior permission, the Ministry of Home Affairs, Government of
India invariably endorses a copy thereof to the concerned branch of the bank.
As such, no credits of foreign contributions should be allowed in the
Accounts of Organisations/Associations unless an order to this effect is
received by the branches from the Government. Further, the half yearly Returns
as on 31st March & 30th September of every year should invariably be
forwarded to Government within the stipulated period of two months of the
closure of the half year.
4. It may please be noted that
non-adherence to these instructions resulting in violations of the provisions
of the said Act or non submission of timely Returns to Government of India
would be viewed seriously by us.
5. The contents of this
Circular should be brought to the notice of all your offices/branches for
immediate compliance and a copy of the advice issued to your branches in this
regard may be sent to us for our information and record.
Yours faithfully,
(A.L. Sinhmar)
Deputy General Manager