FCRA Designated Bank Account

What Is a FCRA Designated Bank Account?

The Foreign Contribution (Regulation) Act governs how Indian NGOs may receive money from abroad. Since the 2020 amendment, every FCRA-registered organisation must receive all foreign contributions into one specific designated account opened at the State Bank of India, New Delhi Main Branch on Sansad Marg. This single entry point lets the government monitor all foreign funds centrally before they move anywhere else.

An Indian NGO meets this account at the very first foreign donation. Foreign money must land only in the SBI designated account; from there it can be transferred to one or more utilisation accounts at any scheduled bank for actual project spending. Domestic donations must never be mixed in. In the books, the designated account is kept strictly for foreign contribution receipts, and its balance and movements feed the annual FCRA return the NGO must file.

How FCRA Designated Bank Account Works

Foreign funds flow through the designated account in a controlled path:

1. 1Open the SBI designated account

   On FCRA registration, the NGO opens the designated FC account at SBI New Delhi Main Branch — the mandatory entry point.

2. 2Receive all foreign contributions there

   Every foreign donation is credited only to this account; the bank reports receipts to the government.

3. 3Transfer to utilisation accounts

   Funds move from the designated account to utilisation accounts at any scheduled bank for project spending.

4. 4Keep domestic money out

   No local donation or income is deposited in the FC accounts, keeping foreign and domestic funds separate in the books.

5. 5Report in the annual return

   Receipts and utilisation are compiled and filed in Form FC-4 with audited FC accounts.

Where FCRA Designated Bank Account Applies — NGOs and Non-Profits

The designated account is mandatory for any non-profit taking foreign money:

• Foreign-funded NGOs — Organisations receiving grants from overseas foundations must route them all through the SBI account.
• Faith and community trusts — Religious and community bodies receiving donations from abroad fall under the same rule.
• Research and education non-profits — Institutions taking foreign research or scholarship grants must use the designated account.
• Relief and development agencies — Bodies receiving international disaster or development funding channel it through the account.
• Multi-project NGOs — Larger NGOs move funds from the single FC account to several utilisation accounts by project.

See also: NGO & Non-Profit Accounting Bank & Credit Card Reconciliation

Statutory Position on FCRA Designated Bank Account

The Foreign Contribution (Regulation) Act 2010, as amended by the FCRA (Amendment) Act 2020, requires every person granted FCRA registration or prior permission to receive foreign contribution only in a single designated FCRA account opened at the State Bank of India, New Delhi Main Branch, 11 Sansad Marg, New Delhi. The NGO may open one or more utilisation accounts at other scheduled banks, but foreign funds must first land in the designated account. The annual return in Form FC-4, with audited accounts, is due within nine months of the financial year-end, i.e. by 31 December.

• Designated account — Single FC receipt account at SBI New Delhi Main Branch, Sansad Marg. Law stated as at 22 July 2026.
• Legal basis — FCRA 2010 as amended by the FCRA (Amendment) Act 2020, and FCRR Rules.
• Utilisation accounts — Permitted at any scheduled bank, but only for funds transferred from the designated account.
• Annual return — Form FC-4 with audited FC accounts, due by 31 December (nine months after year-end).

FCRA Designated Bank Account: A Practical Example

A Kolkata education NGO receives a ₹50,00,000 foreign grant. It lands only in its SBI New Delhi Main Branch designated account, never in its local account. The NGO transfers ₹30,00,000 to its utilisation account for a school project and keeps a ₹5,00,000 domestic donation entirely separate. At year-end it files Form FC-4 by 31 December, reporting receipts and the ₹28,00,000 utilised — the single-account discipline making the return clean and defensible.

Common Mistakes With FCRA Designated Bank Account

FCRA account errors are among the fastest ways to lose registration:

• Receiving foreign funds elsewhere — Crediting a foreign donation to a local or utilisation account breaches FCRA → route every foreign receipt through the SBI designated account first.
• Mixing domestic and foreign money — Depositing local donations in the FC account contaminates it → keep domestic funds in wholly separate accounts.
• Sub-granting without care — Transferring FC funds to unregistered entities is now barred → transfer only to permitted utilisation accounts and eligible recipients.
• Missing the FC-4 deadline — Filing the annual return after 31 December attracts penalties → file Form FC-4 with audited accounts on time.
• Poor fund-flow trail — Weak records between designated and utilisation accounts fail scrutiny → maintain a clear transfer and spending trail.

Related Accounting Terms

Terms an NGO finance team meets alongside the FCRA account:

• Section 12A / 80G Annual Upkeep — Income-tax registration renewal for NGOs.
• Restricted Corpus Donations — Donor-directed corpus funds.
• Goods Transport Agency (GTA) RCM — GST reverse charge on transport.
• Accounting Terms Glossary — Browse every accounting term in one place.