Another FCRA account for transfer from designated account

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Official source and legal ownership

What this covers

Beyond the mandatory designated receipt account at SBI New Delhi Main Branch, an FCRA-registered entity may open one or more additional accounts - commonly called utilisation accounts - at any scheduled bank of its choosing, for the specific purpose of keeping or utilising foreign contribution transferred out of the designated account.

How this differs from the designated account

A utilisation account can never itself be a receipt point for foreign contribution from a donor - funds may only reach it as an internal transfer from the designated account - and it must be reported to the regulator as an FCRA account alongside the designated account, not treated as an ordinary operational bank account outside the FCRA reporting framework.

Why it matters

Because a utilisation account is functionally restricted to receiving only internal transfers from the designated account, an organisation must ensure no other funds - donor payments, refunds, or local receipts - are ever credited to it, and every such account must be disclosed and reconciled as part of the organisation's FCRA reporting, not run as a parallel, unreported account.