Guidelines issued under Section 36(1)(a) of the Banking Regulation Act, 1949 - Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) Implementation of the provisions of Foreign Contribution (Regulation) Act, 2010

RBI/2011-12/395
RPCD.CO.RRB.RCB.AML.BC.No. 59 /03.05.33(E) /2011-12

February 9, 2012

All Regional Rural Banks (RRBs)/
State Co-operative Banks (StCBs) /
District Central Co-operative Banks (DCCBs)

Dear Sir,

Guidelines issued under Section 36(1) (a) of the Banking Regulation Act, 1949 - Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) Implementation of the provisions of Foreign Contribution (Regulation) Act, 2010

The Reserve Bank, considering the public interest and on being satisfied that it is necessary so to do, in exercise of the powers conferred by Clause (a) of sub-section (1) of Section 36 of the Banking Regulation Act, 1949 (Act 10 of 1949)/36(1) (a) of theBanking Regulation Act, 1949 (As Applicable to Co-operative Societies) and of all the powers enabling it in this behalf, hereby issue the guidelines on Foreign Contribution (Regulation) Act, 2010 and Foreign Contribution (Regulation) Rules, 2011  enclosed herewith, for compliance of all  RRBs/ StCBs/DCCBs. With the coming into force of the Act, Foreign Contribution (Regulation) Act, 1976 stands repealed.

2. The salient features of the new Act are given in the Annex to this circular. This circular is intended only to serve as a guide to RRBs/ StCBs/DCCBs for carrying out their obligations under the Act and the Rules made thereunder. In case of doubt, RRBs/ StCBs/DCCBs should make it a point to refer to the text of the Act and the Rules, and if found necessary, proper legal advice should be taken.

3. Please acknowledge receipt of this circular to our Regional Office concerned.

Yours faithfully

(C.D.Srinivasan)
Chief General Manager

Encls: As above