RBI issues guidelines on accepting foreign contribution

The RBI on Thursday issued guidelines which stipulates that entities have to get themselves registered with the central Government before accepting any foreign contribution and banks will have to forward the report of receipts of such transfers to the Government.

In the guidelines issued under the Foreign Contribution (Regulation) Act, 2010, the RBI also said that recipients can receive foreign contribution in a single account only. “The Act provides that persons having definite cultural, economic, educational, religious and social programmes should get themselves registered with the Government of India before accepting any ‘foreign contribution’.

“In case a person falling in the above category is not registered with the central Government, it can accept foreign contribution only after obtaining prior permission of the central Government,” said the guidelines.