FEMA & FCRA Updates

Frequently asked questions

What is the difference between FEMA and FCRA?

FEMA, the Foreign Exchange Management Act, 1999, governs foreign exchange transactions, foreign investment and external commercial borrowings, and is administered by the RBI and the Central Government. FCRA, the Foreign Contribution (Regulation) Act, 2010, regulates foreign donations to NGOs and other persons, and is administered by the Ministry of Home Affairs.

What is compounding under FEMA?

Compounding lets a person voluntarily admit a FEMA contravention and settle it by paying a sum, instead of facing adjudication. Under Section 15 of FEMA it is done by the RBI or the Enforcement Directorate, at the authority's discretion. It is not available once an appeal against an adjudication order has been filed.

How long is FCRA registration valid?

FCRA registration is valid for five years. Renewal must be applied for online on the FCRA portal before expiry, ideally within the six-month window before it expires. If renewal is refused, the registration is treated as expired from the date of refusal.

Where must foreign contributions be received?

Since the 2020 amendment, foreign contributions must first be received in the designated 'FCRA Account' at the State Bank of India, New Delhi Main Branch. They cannot be transferred to other persons, and administrative expenses are capped at 20 per cent.

How can White Collar Professional help with a FEMA or FCRA matter?

Post your requirement on White Collar Professional to receive proposals from verified Chartered Accountants, Company Secretaries and Advocates, compare them, and pay securely through the platform. This page also tracks the latest FEMA or FCRA FEMA and FCRA updates as they are reported.