Re: FCRA funds clarification

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This discussion seeks clarification on the Foreign Contribution Regulation Act (FCRA) regarding the use of FCRA funds. Specifically, it questions whether taking an overdraft facility against a Fixed Deposit (FD) funded by FCRA is permissible. Further inquiries address whether the overdraft amount is classified as domestic or foreign contribution funds, and if it can be repaid using domestic resources.

vijay.v.kulkarni

vijay.v.kulkarni (Querist)
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30 December 2023 Dear Sir/ Madam,

We have received FCRA funds parked in the FD and taken the Overdraft facility against the FD. Below are my questions.
1. Is this allowed as per the FCRA Act?
2. Will the OD amount be considered domestic or FC funds? if it is a FC funds -
3. Can we re-pay the OD from domestic funds?

Thank You
Vijay