Last updated: September 13th, 2024 12:11 PM

Foreign Contribution (Regulation) Amendment Rules, 2022 (FCRA Rules 2022)

The Central Government vides a Notification No. GSR 506(E) dated 01.07.2022 introduced the Foreign Contribution (Regulation) Amendment Rules, 2022 to further amend the Foreign Contribution (Regulation) Rules, 2011.  Any gift or foreign contribution by an Individual from foreign relatives is required to be intimated to the Central Government in Form FC-1 within 3 months if the amount exceeds Rs. 10 Lakh in a financial year. The present article briefs the key highlights of FCRA Rules 2022. 2022 Extension of FCRA Registration Certificate Validity

Synopsis of FCRA Rules 2022

The synopsis of Foreign Contribution (Regulation) Amendment Rules, 2022 is listed as follows:

• The Central government has made seven amendments to existing rules of the Foreign Contribution (Regulation) Act (FCRA) rules 2011.
• The FCRA rule aims at prohibiting acceptance and utilization of foreign contribution or foreign hospitality for any activities detrimental to the national interest.
• FCRA Rules 2022 allows Indians to receive up to Rs 10 lakh in a year from relatives staying abroad without informing the authorities. The earlier FCRA limit was Rs 1 lakh.

Know more about Foreign Contribution (Regulation) Amendment Act, 2020

What is FCRA Full Form?

The FCRA full form is Foreign Contribution (Regulation) Act. It is an Indian law enacted to regulate the acceptance and utilization of foreign contributions or donations by individuals, associations, and companies. The primary objective of the FCRA is to ensure that foreign funds do not adversely affect the internal security, sovereignty, or integrity of India. Entities seeking to receive foreign contributions must register under the FCRA and adhere to strict FCRA guidelines governing the use of these funds for charitable, religious, educational, or cultural purposes.

What is the FCRA Act?

The "FCRA Act" is an Indian legislation designed to monitor and control the flow of foreign funds into the country. The Act sets out the legal framework for how organizations and individuals can accept and utilize foreign contributions, ensuring that these funds are used in a manner consistent with national interests. This FCRA Act mandates that entities must obtain prior approval or registration from the Ministry of Home Affairs to receive such contributions, and it imposes various reporting requirements to maintain transparency and accountability in the use of foreign donations.

Amendment in Rule 6 of FCRA 2011

Rule 6 is related to the intimation of receipt of a foreign contribution from relatives. As per extant rule 6, any person receiving a foreign contribution over Rs. 1 Lakh in a financial year from any of his relatives shall inform the Central Government in Form FC-1 within 30 days from the date of receipt of such contribution.

Threshold limit Increased

The FCRA Amendment Rules 2022 has increased the limit to Rs. 10 Lakh from the existing FCRA limit of Rs. 1 Lakh.

Time Limit increased

The time limit to intimate the receipt of a foreign contribution from relatives to the Central Government in FC-1 is increased to 3 months from the existing time limit of 30 days. Any gift or foreign contribution by an Individual from foreign relatives is required to be intimated to the Central Government in Form FC-1 within 3 months if the amount exceeds Rs. 10 Lakh in a financial year

Amendment in Rule 9 of FCRA 2011

Rule 9 rules prescribe making an application for FCRA registration or obtaining prior permission to receive foreign contribution. One of the conditions of obtaining the FCRA registration or prior permission is that the organization making the application must have an FCRA Bank account.  Through the FCRA Rules 2022 amendment is carried out in clause (e) of sub-rule (1) and sub-rule (2) of Rule 9 :

• Extant Rule 9(1) (e) prescribes furnishing intimation for the opening of an additional FC-utilization Bank Account for utilization of foreign contributions. 
• Similarly, Rule 9(2)(e) prescribes furnishing an intimation for the opening of an additional FC-utilization Bank Account for utilization of foreign contribution in case of prior permission.

The existing FCRA guidelines or rules say a person may open one or more accounts in one or more banks to utilize the foreign contribution after it has been received and, in all such cases, intimation in electronic form in Form FC-6D shall be furnished to the Secretary, Ministry of Home Affairs, New Delhi within 15 days of the opening of any account. This is applicable both for FCRA registration and FCRA prior permission. The Amendment Rules 2022 has increased the time limit to furnish the intimation in Form 6D to 45 days from 15 days in both the cases of FCRA registration and FCRA prior permission with effect from 1st July 2022. FCRA registered entitles shall be required to furnish Form FC-6D within 45 days from the date of opening an FCRA utilization bank account. In the case of entities with FCRA prior permission, the Form FC-6D shall be required to be furnished within 45 days from the date of opening an FCRA utilization bank account as per Rule 9(2)(e).

Amendment in Rule 13 of FCRA 2011

The extant Rule 13(b) provides for intimation of quarterly receipt of foreign contribution by FCRA registered entitles or associations on their official website or the FCRA website. FCRA Rules 2022 now announced that FCRA registered entitles shall not be required to furnish any intimation of quarterly receipt of foreign contribution either on their website or on the FCRA website.

FCRA Act Amendment in Rule 17A of FCRA 2011

As per the existing provisions of Rule 17A,  any person who has been granted a certificate of registration under section 12 or prior permission under section 11 of the Act shall intimate the following changes in the prescribed form electronically within 15 days of such change:

Sl.No	Form No.	Intimation of Changes
1	FC-6A	Intimation - Change of name and/ or address within the State of the Association
2	FC-6B	Intimation - Change of nature, aims, and objects, and registration with local/relevant authorities in respect of the association
3	FC-6C	Intimation - Change of designated bank/ branch/ bank account number of designated FC receipt-cum-utilisation bank account
4	FC-6D	Intimation - Opening of additional FC-utilisation Bank Account for utilization of foreign contribution
5	FC-6E	Intimation - Change in original Key members of the association

The FCRA Amendment Rules 2022 has increased the time limit to furnish the intimation in Form 6A to Form 6E to 45 days from 15 days.

FCRA Act - Amendment in Rule 20 of FCRA 2011

As per the existing provisions of Rule 20,  an application for revision of an order passed by the competent authority under section 32 of the Act shall be made to the Secretary, Ministry of Home Affairs, Government of India, New Delhi on a plain paper along with a fee of Rs. 3,000/- only. The Amendment Rules 2022 provides for making an application for revision of an Order in the prescribed form which shall be required to be filed electronically.

Updated text of Rule 20 of FCR Rules, 2011

20. Revision. - An application for revision of an order passed by the competent authority under section 32 of the Act shall be made to the Secretary, Ministry of Home Affairs, Government of India, New Delhi on a plain paper in such form and manner, including in electronic form as may be specified by the Central Government and it shall be accompanied by a fee of rupees three thousand only, which shall be paid through the payment gateway specified by the Central Government.

The official Notification pertaining to the Foreign Contribution (Regulation) Amendment Rules, 2022 is attached here for reference: [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2022/07/236981.pdf" title="Foreign Contribution (Regulation) Amendment Rules, 2022"]