The RBI issued guidelines which stipulate that entities have to get themselves registered with the central government before accepting any foreign contribution and banks will have to forward the report of receipts of such transfers to the government.
In the guidelines issued under the Foreign Contribution (Regulation) Act, 2010, the RBI also said that recipients can receive foreign contribution in a single account only.
"The Act provides that persons having definite cultural, economic, educational, religious and social programmes should get themselves registered with the government of India before accepting any 'foreign contribution'.
"In case a person falling in the above category is not registered with the central government, it can accept foreign contribution only after obtaining prior permission of the central government," said the guidelines.
Under the Act, foreign contribution means "donation, delivery or transfer made by a foreign source of any article (not being an article of gift for personal use, the market value of which is not more than the specified amount), currency (whether Indian or foreign) or any security".
The apex bank said with the coming into force of the new Act, the old Foreign Contribution (Regulation) Act, 1976 stands repealed.
"The Act mandates that every bank or authorized person in foreign exchange shall report to specified authority, the prescribed amount of foreign remittance, source and manner in which foreign remittance was received and other particulars in such form and manner as may be prescribed," the report said.
