Section 17 FCRA: Foreign Contribution Through Scheduled Bank

Section 17 of the Foreign Contribution (Regulation) Act, 2010 governs the bank accounts through which an organisation or person holding FCRA registration or prior permission may receive, retain and utilise foreign contribution. The provision was substantially substituted by the Foreign Contribution (Regulation) Amendment Act, 2020. The earlier rule permitting initial receipt in a selected scheduled bank branch is no longer applicable.

Meaning and scope of Section 17(1)

Under Section 17(1), every person granted a certificate of registration or prior permission under Section 12 must receive foreign contribution only in an account designated as an "FCRA Account" at the notified branch of the State Bank of India in New Delhi.

First proviso: another FCRA Account

The recipient may open another "FCRA Account" in a scheduled bank of its choice to keep or utilise foreign contribution already received in the designated SBI New Delhi account. This additional account cannot serve as the initial point for direct receipt of foreign contribution from a foreign source.

Second proviso: utilisation accounts

The recipient may also open one or more accounts in one or more scheduled banks to utilise foreign contribution transferred from the designated SBI account or kept in the additional FCRA Account. These are commonly called utilisation accounts.

Third proviso: no mixing of funds

No funds other than foreign contribution may be received or deposited in any of these FCRA-related accounts. Domestic donations and unrelated domestic receipts must be kept outside these accounts. Income arising from foreign contribution must also be accounted for under the applicable FCRA provisions.

Section 17(2): Reporting by banks and authorised persons

Section 17(2) requires the designated SBI branch, the relevant scheduled bank branch where a foreign contribution account is held, or an authorised person in foreign exchange to report to the specified authority in the prescribed form and manner. The report covers:

1. The prescribed amount of foreign remittance;
2. The source and manner in which the remittance was received; and
3. Other prescribed particulars.

This statutory reporting duty applies to the relevant bank or authorised person and is distinct from the recipient's own reporting and annual return obligations.

How the FCRA banking arrangement works

1. Open the designated receipt account: Arrange the mandatory SBI New Delhi Main Branch FCRA Account, including required bank KYC documentation, before applying for registration or prior permission.
2. Receive foreign contribution: Direct eligible foreign contributions only to that designated SBI account.
3. Transfer for keeping or utilisation: Transfer funds as permitted to another FCRA Account or one or more utilisation accounts in scheduled banks, subject to applicable banking and FCRA requirements.
4. Maintain segregation and records: Do not mix domestic receipts with foreign contribution. Maintain proper records, supporting documents and accounts under Section 19.
5. Comply with intimations and returns: Report relevant bank-account changes through the applicable forms and comply with Section 18, Rule 17A and the annual return requirements.

Relevant legal provisions

Section 12: Registration and prior permission to accept foreign contribution. Section 17: Mandatory banking channel and bank reporting. Section 18: Intimation requirements relating to foreign contribution. Section 19: Maintenance of accounts and records. Section 20: Audit of accounts. Rule 17A of the Foreign Contribution (Regulation) Rules, 2011: Prescribed intimations of changes, including relevant bank-account particulars, through the applicable forms.

Official government guidance and references

Updated: 7 October 2026. Consult the latest notifications, rules and directions published by the Ministry of Home Affairs for specific compliance questions.