More Than One Bank Account for FCRA Fund

  • It is now clear from new FCRA Act, that an organization can open more than one FC Bank Account.

  • There must be one main or primary Bank Account where all FC Fund will be deposited.

  • Other FC Bank Accounts are called designated bank account and at the end of the year, the balance of designated account is to be kept as NIL.

  • When an NGO open a Designated FC Bank Account, It has to furnish intimation on plain paper to The Secretary, Ministry of Home Affairs, New Delhi within fifteen days of the opening of any account.    

Effects :-

  • It will reduce CASH TRANSACTIONS in utilization of funds for the projects in rural area.

  • It will increase Bank Habits specifically in rural areas where FC projects are implemented.

  • Donor/Grantor may ask NGOs to open a separate FC Designated Bank Account for his project. (Same like in NABARD etc.. of Government Project, NGO has to open separate Local Bank Account)

  • It will increase work of Maintenance of Bank Documents and recording Bank transactions and Book keeping.
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