The RBI today issued guidelines which stipulates that entities have to get themselves registered

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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apex bank said with the coming into force of the new Act, the old Foreign Contribution (Regulation) Act, 1976 stands repealed.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 central Government is empowered to prohibit any person or organisation not specified in the Act from accepting any foreign contribution and to require any person or class of persons, not specified in it to obtain prior permission of the central government before accepting any foreign hospitality," the guidelines said.

According to the Act, some obligations have been put on banks in relation to the receipt of foreign contributions.

"Every person who has been granted a certificate of registration/prior permission as stipulated in the Act shall receive foreign contribution in a single account and only through such branches of a bank as may be specified in his application.

"... The Act mandates that every bank or authorised 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," it said.

Entities which were granted certificates of registration or prior permission under the Foreign Contribution (Regulation) Act, 1976, will continue to be eligible to receive foreign contribution under the new rules and such registration shall be valid for a period of five years.

"Any permission to accept foreign hospitality granted under... The repealed Act would also be deemed to be the permission granted under the Act until such permission is withdrawn by the central government," the RBI said.