Dear all
Can FC be transferred directly to the farmer’s bank account to meet monthly household consumption? Can it be considered as a utilization of FC funds? What will be the project progress report to justify this utilization when the FC audit happens?
From Sanwarmal
Chejara ji, hope you are doing well and all is good at BIAF.
To your query, an individual is covered under the definition of Person under FCRA. Therefore, it attracts the provision of Section 7 which prohibits transfer of FC to other person which includes an individual. So, FC transfer to an individual, HUF, association (including an SHG/VO) and a section 8 company is not possible post the Sep 2020 amendment.
Hope it clarifies.
Regards
Sharad