scorecardresearchRules relating to foreign donations via NEFT, RTGS tweaked: Report

Rules relating to foreign donations via NEFT, RTGS tweaked: Report

Updated: 17 Feb 2023, 11:00 AM IST
TL;DR.

Originating banks have to pass on donor details relating to “transaction without Legal Entity Identifier (LEI) details” and “transaction without LEI details” as part of ‘Sender to remitter information’ in NEFT and RTGS, it added.

The FCRA account contributions are received directly from foreign banks through SWIFT and from Indian intermediary banks via NEFT and RTGS, added the report.

The FCRA account contributions are received directly from foreign banks through SWIFT and from Indian intermediary banks via NEFT and RTGS, added the report.

The Reserve Bank of India (RBI) has asked member banks participating in payment systems to tweak their core banking/middleware solutions to capture the necessary details while sending the foreign donations through NEFT and RTGS systems to State Bank of India (SBI), reported Business Line.

Originating banks will have to select two mandatory fields of NEFT/RTGS systems while remitting foreign donations to the Foreign Contribution (Regulation) Act (FCRA) account at SBI, said the report.

Further, originating banks have to pass on donor details relating to “transaction without Legal Entity Identifier (LEI) details” and “transaction without LEI details” as part of ‘Sender to remitter information’ in NEFT and RTGS, it added. 

According to the central bank, the aforementioned instructions will be effective from March 15, 2023.

As per the FCRA, 2010 (amended as on September 28, 2020), foreign contributions are received only in the “FCRA account” of SBI, New Delhi Main Branch.

The FCRA account contributions are received directly from foreign banks through SWIFT and from Indian intermediary banks via NEFT and RTGS, added the report.

First Published: 17 Feb 2023, 11:00 AM IST