What changed
RBI circular DBOD.No.AML.BC.67/14.01.055/2004-05, dated January 4, 2005, exempts associations from Section 6(1-A) of FCRA, 1976, for Tsunami relief contributions. This temporary exemption, effective from December 30, 2004, to March 31, 2005, allows associations to accept foreign cash and kind without prior government approval, subject to conditions.
What it means for you
Banks must facilitate quick opening of 'Tsunami Relief Accounts' for eligible associations and ensure compliance with conditions: separate accounts, records, and timely MHA filings. Non-compliance risks regulatory action. This is a time-bound relaxation for disaster relief, not a permanent change.
What you must do
- Instruct branches to open 'Tsunami Relief Account' for associations seeking exemption, without prior FCRA permission.
- Ensure associations submit Form FC-IA to MHA within one week of account opening.
- Verify separate accounts and records are maintained for Tsunami relief contributions.
- Monitor that associations file Form FC-3 and FC-6 (for articles) within 4 months of year-end, certified by CA.
- Acknowledge receipt of this circular to RBI.
Who it affects
All scheduled commercial banks (except RRBs), Associations with cultural, economic, educational, religious, or social programmes (excluding political parties), Branches handling foreign contributions for Tsunami relief
What is the deadline for associations to open the Tsunami Relief Account?
The exemption is effective from December 30, 2004, to March 31, 2005. Associations must open the account and submit Form FC-IA to MHA within one week of opening.
Can political parties use this exemption?
No, the exemption explicitly excludes political parties. Only associations with definite cultural, economic, educational, religious, or social programmes are eligible.
What reporting is required after receiving contributions?
Associations must file Form FC-3 (for cash) and Form FC-6 (for articles), certified by a Chartered Accountant, within 4 months of the financial year closure to MHA's Foreigners Division.