Applied example
An existing association keeps its local operating bank, but instructs every foreign donor to remit only to the SBI New Delhi Main Branch FCRA Account and moves funds onward through documented FCRA accounts.
NGO, FCRA and tax control
SBI New Delhi Main Branch designated FCRA account implementation
Every registered or prior-permission recipient must receive foreign contribution first into the designated FCRA Account at State Bank of India, New Delhi Main Branch, 11 Sansad Marg. Additional FCRA and utilisation accounts may be used only within the statutory chain; local funds must not enter that chain.
Controlling law and exact effect
Authority: section 17 as amended in 2020 and MHA implementation notice
Provision and paragraph decode
| Control | What to establish |
|---|---|
| Trigger | opening or migrating the designated receipt account and remitting each foreign inward receipt |
| Evidence pack | SBI account-opening/KYC pack, MHA notice, registration or permission, donor remittance advice, SWIFT details, transfer trail and bank reconciliation |
| Timing | complete the designated-account setup before receipt and apply the transition dates stated in the official notice |
| Legal result | Every registered or prior-permission recipient must receive foreign contribution first into the designated FCRA Account at State Bank of India, New Delhi Main Branch, 11 Sansad Marg. Additional FCRA and utilisation accounts may be used only within the statutory chain; local funds must not enter that chain. |
Working workflow
- Substantiate.
Assemble SBI account-opening/KYC pack, MHA notice, registration or permission, donor remittance advice, SWIFT details, transfer trail and bank reconciliation and reconcile it to books, bank records and prior filings. - Decide and close.
Apply complete the designated-account setup before receipt and apply the transition dates stated in the official notice, obtain approval where required, preserve submission evidence and monitor the resulting restriction or next deadline.
Practical example and highlighted point
Do not miss
Exam and advisory case study
A trust has a facially complete document but one fact conflicts with section 17 as amended in 2020 and MHA implementation notice.
Finin2min summary and Q&A
Summary: Every registered or prior-permission recipient must receive foreign contribution first into the designated FCRA Account at State Bank of India, New Delhi Main Branch, 11 Sansad Marg.
What should the audit file contain?
SBI account-opening/KYC pack, MHA notice, registration or permission, donor remittance advice, SWIFT details, transfer trail and bank reconciliation, together with the legal conclusion, filing or payment proof and follow-up action.
Primary official sources and related links
Page-specific official source | FCRA Act, 2010 | FCRA portal
FCRA 2020 SBI Account Transition Explained
The 2020 changes to FCRA account requirements were structural, not merely a new IFSC or a banking convenience. Foreign contribution received by an eligible association must follow the statutory receipt chain.
How the legal framework applies
Section 17 was amended so that foreign contribution is initially received only in the notified SBI New Delhi Main Branch account, even if the NGO works in another state. An existing association’s older bank arrangements cannot displace the amended statute. MHA subsequently issued operational advisories and a charter explaining the distinction between receipt and utilisation accounts. The date of a historical notice should be compared with the event date, as later directions can supersede implementation windows.
Evidence, filings and practical controls
For audit purposes, attach the amended account requirement, the actual SBI NDMB account-opening confirmation, bank account-intimation history, donor remittance advices and inter-account ledgers. Where a donor mistakenly sent a wire to a former designated account, preserve the bank’s handling and regulator correspondence; do not post it as a lawful receipt merely because money appeared in the account. Where a programme is supported by prior permission, maintain the link between the specified donor and account.
Worked scenario
In 2020 an NGO was receiving grants through a bank in Pune. Its 2026 audit must test receipts against the current section 17 account route, not continue a historical checklist based solely on the pre-2020 system. The controls should distinguish already-spent earlier-year contributions from fresh donations.
Common mistakes to avoid
- Do not repeat the 2020 implementation timetable as a 2026 deadline.
- Separate SBI receipt records from later utilisation movements.
- Check the certificate and donor approval alongside account compliance.
Frequently asked question
- Did the 2020 amendment ban every non-SBI account?
- No; it specifically changed the initial receipt route while allowing statutory downstream account arrangements.