Proceeds on FDs/ Investments which are created out of foreign contribution can be credited to FCRA Utilization Account.
MHA has clarified with reference to the provisions of section 2(1)(h)-Explanation 2 & 3 of FCRA, 2010 that fixed deposits created or investment in financial instruments out of Foreign Contribution in FCRA utilization account, on maturity or returns of such investments/ FDs shall be credited into a FCRA Utilization account of the association maintained in any bank provided such investment made by the association is not falling under the category of speculative activities as defined in rule 4 of the FC(R)R, 2011.
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