Summer Training Report

On
“Business Opportunity for Yes Bank Ltd in FCRA Accounts of 
Charitable Institutions”

Submitted in the partial fulfillment

fulfillment for the award of Masters
Degree in Business Administration (2007-2009).

Under Supervision Submitted By

Mr. Jatindeep Sachdeva Saravpreet Singh
Vice President Roll No.747
Government Relationship Management MBA 3rd Sem
Yes Bank Ltd.

PANIPAT INSTITUTE OF ENGINEERING & TECHONOLGY

KURUKSHETRA UNIVERSITY
KURUKSHETRA

1
 INDEX

1. Acknowledgement
Acknowledgement 4

2. Preface 5

3. Executive Summary
Summary 6

3. Introduction 7

4. Overview of FCRA 8

5. Company Profile 13

6. Industry Profile 21

7. Objective of Study 32

8. Research Methodology 33

9. Sampling 36

10. Time Period 37

2
11. Areas of Study 38

12. Analysis & Interpretation

Interpretation 39

13. Comparison of Banks Products 53

14. Conclusion & Suggestion 54

15. Problems & Limitations 51

16. Annexure 57

17. Bibliography 61

3
ACKNOWLEDGEMENT

I would like to thank all the people without those help this project could not have been
completed.
completed. Mr. Jatindeep
Jatindeep Sachdeva,
Sachdeva, Vice president GRM (Government
(Government Relationship
Relationship
Management) Team who was my guide, was extremely patient and open to what ever 
suggestion I had to make and in the process gently guide me whenever I went wrong. I
would like to thank Mr. A.S.Khurana Senior Advisor YBL (Yes Bank Ltd.) who gave me
chance to work in a Bank as reputed as YES BANK LTD. The people without whom I
could never managed this far as Mrs. Puja Walia H.O.D. MBA Department.

I would be failing in my duty if I do not express my thanks to my respondents whom I

visited and who spared their valuable time to answer my questions. Last, but not the least,
my thanks to all the people who helped me in making my efforts fruitful.

4
PREFACE

Practical exposure in the field of management is extremely important as it gives a close

view of the real business issues. It helps to cover all part that remained uncovered in the
classroom. It helps to gain experience. Just theoretical knowledge is not sufficient for the
success of any business student. So one should have practical knowledge about each
aspect of life.

I learnt lot of new things from this project, which could never have been learnt from
theory classes.

If any findings & recommendations go in any way to prove some new ground in helping
the commodity future sector, I shall deem my efforts have duly served the purpose. In the
forthcoming pages an attempt has been made to present report covering different aspects
of my project.

5
EXECUTIVE SUMMARY

• MAIN OBJECTIVE:
Objective of the study is to search Business opportunities
opp ortunities in foreign
contribution Regulation Act 1976, (FCRA) accounts
acco unts of charitable institutions
in Delhi NCR for the Yes Bank Ltd. and forming strategies to target this
segment for the bank.

• SUB OBJECTIVES:
1. To make a comparat
comparative
ive analys
analysis
is of the Banking
Banking produc
productt offered
offered by the
Banks in FCRA accounts to the charitable institutions.
2. To take an overvie
overview
w of the needs
needs of the charita
charitable
ble instit
instituti
utions
ons in banking
banking
industry.
3. To recomm
recommend
end a product
product in
in accordanc
accordancee to the rules
rules of FCRA
FCRA 1976 and
and as
 per the guidelines of the RBI.

• METHODOLOGY: -
Approach to the project starts from the deep theoretical knowledge of the Act
with the help of internet following the visits to the office of FCRA at Ministry of 
Home Affairs (MHA) New Delhi. Then visiting to the different type of Non
Governmental Organizations (NGO’s) in the Delhi and NCR and collecting the
requi
require
red
d info
inform
rmat
atio
ion
n for
for the
the proj
project
ect repo
report
rt by aski
asking
ng the
the ques
questi
tion
onss to the
the
respondent institutional executives or their members.

6
INTRODUCTION
INTRODUCTION TO THE REPORT

Report has been prepared with the objective of searching for the business opportunities
for the bank by collecting and analyzing information from various sources and making
strategies for the same.
Report has valuable information which has been carefully
collected and analysis on the same has been made to reach at the appropriate conclusion.
Survey has been done of the
of the various charitable institutes with appropriate questionnaire
framed with the objective kept in mind. Questions were asked to the officials to the
various organizations and necessary information was collected as a primary source to the
subject. Detail study of Foreign Contribution Regulation Act 1976 is done to have the
deep theoretical and practical knowledge of the project.
Project
Project is to study the requirements
requirements of the charitable
charitable institut
institutions
ions in the banking product
which is done by meeting different charitable institutions and asking them about their 
 present banker and their needs. A comparison of the banking product offered by the
Standard Chartered Bank and HDFC Bank is also done by meeting the two Banks
officials in Delhi region.

7
An Overvi
Overview
ew to the Foreig
Foreign
n Contri
Contribut
bution
ion (Regul
(Regulati
ation)
on) Act
FCRA 1976.

Foreig
Foreign
n Contrib
Contributi
ution
on (Regul
(Regulati
ation)
on) Act was given
given by the Parlia
Parliamen
mentt in the Twenty
Twenty--
seventh year of the republic India. It is to regulate the acceptance and utilization of 
foreign contribution or foreign hospitality by certain persons or associations, with a view
to ensuring that parliamentary institutions, political associations and academic and other 
voluntary organizations as well as individuals working in the important areas of national
life may function in a manner consistent with the values of a sovereign democratic
republic, and for matters connected therewith. FCRA department is situated in New
Delhi, Ministry of Home Affairs, Foreigners division, jaisalmer house, 26, Man Singh
Road
Road ever
every
y perm
permis
issi
sion
on for
for regi
regist
stra
rati
tion
on is sent
sent here
here.. Appl
Applic
icat
atio
ion
n Form
Formss can
can be
downloa
downloaded
ded from
from websit
website,
e, www.mha.nic.in
www.mha.nic.in.. Need
Need for
for the
the Fore
Foreig
ign
n Cont
Contri
ribu
buti
tion
on
Regulation Act,1976 was felt due to the security considerations and to ensure that foreign
contributio
contribution
n is utilized
utilized for genuine
genuine activities
activities without compromising
compromising on concerns
concerns for 
national security.

The central government has the power to prohibit any person or organizations from
accepting foreign contribution or hospitality if it is determined that such acceptance
would likely ‘affect prejudicially’ a) the sovereignty and integrity of India, b) public
interest, c) freedom of fairness of election to any legislature, d) friendly relations with
any foreign state, or e) harmony between religious, racial, social, linguistic or regional
groups, castes or communities.
The Act was essentially designed to prevent flow of foreign funds to political parties in
India.

Registration and permission

An associ
associati
ation
on having
having a defini
definite
te cultur
cultural,
al, econom
economic,
ic, educati
educational
onal,, religi
religious
ous or social
social
 programme can receive foreign contribution after it obtains either 
• The prior permission of the central Government, or 

• Gets it self registered with the central Government.

8
 Prior permission
Prior permission is required
• Where the association does not have a FCRA registration ,

• Where the association is kept under prior permission category,

• Where registration is frozen

• Association of political nature not being political party.

Accounts
In the
the Act
Act it is ment
mentio
ioned
ned that
that regi
regist
ster
ered
ed asso
associ
ciat
atio
ions
ns may
may only
only rece
receiv
ivee fore
foreig
ign
n
contribution in a single account of a specified Bank branch.
Every association so registered shall give within such time & in such manner as may be
  presc
prescrib
ribed,
ed, intim
intimati
ation
on to the centra
centrall governm
government
ent as to the amount
amount of each
each foreig
foreign
n
contribution received by it.
A separa
separate
te set of account
accountss and record
recordss shall
shall be mainta
maintaine
ined,
d, exclus
exclusive
ively
ly for foreig
foreign
n
contribution received and utilized. Every account shall be maintained on a yearly basis
duly certified by a chartered accountant along with a balance sheet & statement of 
receipt& payment account to MHA.

Foreign Hospitality
The Act regulates receipt and utilization of foreign hospitality by certain individuals
which
which incl
include
udess memb
member
erss of legi
legisl
slat
atur
ure,
e, offi
office
ce-b
-bea
eare
rers
rs of poli
politi
tica
call part
party,
y, judg
judges
es,,
government
government servants,
servants, employees
employees of Corporation
Corporation,, while visiting any foreign country
country or 
territory outside India. Such individuals can receive foreign hospitality only with the
 prior permission of the Central Government. Prior permission is not required when such
indivi
individual
dualss are required
required to receiv
receivee any emergent
emergent medical
medical aid needed on account
account of 
sudden illness contracted during foreign visit, but, they are mandated to intimate the
Central Government within one month from the date of such foreign visit/receipt of 
foreign hospitality. The intimation shall include the source from which and the manner in
which such hospitality was availed by the recipient. Foreign hospitality includes cost of 
travel, boarding, lodging, free transportation, free medical treatment, etc.

9
Over 34,035 associations have been registered under FCRA as on 28th February, 2007 to
receive and utilize foreign contribution. These associations are broadly divided into 5
categories
categories viz. Religious, Cultural,
Cultural, Economic,
Economic, Educational
Educational & Social.
Social. Many of these
associ
associati
ations
ons are simult
simultane
aneous
ously
ly engage
engaged
d in activi
activitie
tiess fallin
falling
g within
within two or more
more
categories.
 No bank should credit any foreign contribution to the account of an association/NGO
unless it produces documentary evidence of having obtained registration/prior permission
from the Central Government for the same. In case any foreign contribution is credited to
the account of an NGO/Association/Trust directly, the bank should not allow utilization
of such
such fund
fund and inform
inform the NGO/A
NGO/Asso
ssocia
ciatio
tion/T
n/Trus
rustt concer
concerned
ned to obtain
obtain necessa
necessary
ry
  permission/registration from the Central Government for the same. Simultaneously, the
 bank should inform the Deputy Secretary (FCRA), Ministry of Home Affairs, Govt. of 
India, New Delhi about such receipt. Non-compliance of the above by the bank will
constitute a violation and will render the defaulting bank liable for appropriate action by
the Reserve Bank of India.

Salient Features
Data pertaining to receipt of foreign contribution
co ntribution for 2005-06 has been compiled. Its
salient features are as below:
I. As on 31-03-2006, 32,144 associations were registered and 513 were granted
 prior permission during the year 2005-06.
II. For the year 2005-06, 18,570 associations reported receipt of foreign
contribution (including those which received NIL amount) amounting to Rs7,877.57
crores.
III. Among the States and Union Territories, Tamil Nadu Rs. 1,609.64 crores
reported the highest receipt of foreign contribution followed by Delhi Rs.1556.46 crores
and Andhra Pradesh Rs 1,011.57 crores.
IV. Among the reporting associations, World Vision of India, Tamil Nadu (Rs.
256.41 crores) received the highest amount of foreign contribution followed
 by Caritas India, Delhi (Rs. 193.36 crores) and Rural Development Trust,

10
Andhra Pradesh (Rs. 126.64 crores).

Analysis of the Last Three Years’ Data

An analysis of the data for the last three years i.e. from 2003-04 to 2005-06 shows
that;
a) United States of America is the top donor country.
 b) Foundation Vincent E Ferrer,
F errer, Spain contributed the highest amount of foreign
contribution.
c) Tamilnadu received the highest amount of foreign contribution.
d) Chennai district received the highest amount
a mount of foreign contribution.
e) World Vision of India, Tamil Nadu received the highest amount of foreign
contribution.
f) Among the purposes, the highest amount was received for Establishment purposes.

RECEIPT OF FOREIGN CONTRIBUTION IN INDIA

Year Amount % Increase over 
( Rs. in Crores ) previous year 
2001-02 4871.90 7.42
2002-03 5046.50 3.58
2003-04 5105.50 1.17
2004-05 6256.68 22.55
2005-06 7877.57 25.91

TOP RECEIPTENT ASSOCIATIONS IN DELHI

Foreign Contribution Rs/Crores
NAME OF ASSOCIATION 2005-06 2004-05 2003-04
Caritas India, Delhi 193.36 65.30 37.54

11
Plan International Inc., Delhi 92.09 64.91 56.80
Oxfam India Trust, Delhi 71.90 52.30 33.93
SOS Children’s Village of India, Delhi 55.91 26.01 38.66
Society for Development Alternatives, Delhi 53.79 28.46 19.32

NUMBER OF ASSOCIATIONS REPORTING TO FCRA

DEPARTMENT
YEAR ASSOCIATIONS
2003-04 1 714 5
2004-05 1 854 0
2005-06 1 857 0

FOREIGN FUNDS COMING TO DELHI

Foreign Contribution Rs/crores
2003-04 857.12
2004-05 1075.23
2005-06 1556.46

12
 COMPANY PROFILE

Country India
Industry Banking
NSE/BSE Listing NSE Code -532648
Regd.& corporate office Nehru centre,9th floor, Discovery of India,
Dr.A.B.Road, worli, Mumbai 400018 Tel:-
+91(22) 6669 9000
Nort
orther
hern Re
Regional Cor
Corp
pora
orate Of
Office 48,Nya
Nyaya Mar
Marg, Cha
Chanakyapur
puri, New
New Del
Delhi
110021 Tel:-+91(11) 6656 9000

13
Website www.yesbank.in

Yes Bank, India’s new age private sector Bank is the outcome of the professional
commitment of its founder Mr. Rana Kapoor supported by his highly competent top
management team to establish a high quality, customer centric, service driven, private
Indian Bank catering to the “Future Industries of India”.

Yes Bank has adopted international best practices, the highest standards of service quality
and operational excellence, and offers comprehensive banking and financial solutions to
all its valued customers. A key strength and differentiating feature of Yes Bank is its
knowledge driven approach to banking and an unprecedented customer experience for its
retail and wealth management clients.

Yes Bank is steadily building corporate and institutional banking, financial markets,
invest
investmen
mentt bankin
banking,
g, corpor
corporate
ate finance
finance,, busine
business
ss (Small
(Small &Mediu
&Medium
m Enterp
Enterpris
rises)
es) and
transa
transacti
ction
on bankin
banking,
g, intern
internati
ational
onal bankin
banking,
g, retail
retail banking
banking and wealth
wealth managem
management
ent
  busine
business
ss lines
lines across
across the country
country.. The Bank’s
Bank’s consta
constant
nt endeavo
endeavour
ur is to provid
providee a
delightful banking experience expressed with simplicity, empathy, and totality.

Yes Bank understands the financial needs of the Government of India, in its progress and
devel
developm
opment
ent role
role of a ‘Gro
‘Growi
wing
ng Indi
India’
a’ thro
throug
ugh
h Yes Bank
Bank’s
’s Knowl
Knowled
edge
ge Bank
Bankin
ing
g
approach and the objective of being the “Bank for an Emerging India”. Yes Bank remains
committed to serving this specialized segment. Yes Bank’s knowledge Banker’s deliver 
innovative, structured and comprehensive solutions through a “Money Doctor” approach
focusing on diagnostic and prescriptive attention to detail. This is facilitated through Yes
Bank’s Technology leadership –delivering proven, easy-to-use solutions for Government
Undertakings and agencies. Yes Bank has provided financial and advisory services to
Ministries of the Union Government, State Governments, Central and State Public Sector 
Undertakings (PSU’s) and Agencies.

14
In a short span of over three and a half years the Government Relationship Management
(GRM) team has developed robust relationships with over 100 entities. The GRM team is
commit
committed
ted to the core
core values
values of client
client orient
orientati
ation,
on, innovat
innovation
ion and superi
superior
or servic
servicee
experie
experience
nce that
that exempli
exemplify
fy all Busine
Businesse
ssess at Yes Bank. GRM team is provid
providing
ing the
Knowledge
Knowledge Advisory,
Advisory, Liquidity
Liquidity Management
Management and Investment
Investment Products,
Products, Transactio
Transaction
n
Banki
Banking,
ng, trade
trade fina
financ
nces
es,, cash
cash mana
manage
geme
ment
nt serv
servic
ices
es,, Trea
Treasu
sury
ry serv
servic
ices
es,, Forex
Forex
Remittances, debt capital markets, investment managements, corporate salary accounts,
Advisory structured transactions, term loans, and cash credit limits to various government
operations like IFFCO, SAIL, Airport Authority of India, IOCL, NDPL, HPCL, Bridge &
Roof co.(India) ltd and many more.

Business Strategy

Knowledge Banking: - One of the strengths and differentiating features of Yes Bank is its
knowled
knowledge
ge bankin
banking
g approach
approach that
that is the essenc
essencee of all offering
offeringss to its customers
customers..
Knowledge has been institutionalized as a key ingredient in all internal and external
  proc
proces
esse
sess and util
utiliz
ized
ed to crea
create
te cust
custom
omiz
ized
ed solu
soluti
tions
ons for
for the
the clie
client
nts’
s’ speci
specifi
ficc
requirements.

Technology and Operations: - As a new generation Bank, Yes Bank has the advantage of 
accessing the latest available technology. The Bank has taken a calibrated decision to
invest in the best IT system and practices in order to make its technology platform a
strategic business tool for building a competitive advantage.

Responsible Banking: -Yes Bank has a vision to champion ‘Responsible Banking’ in

India, where the concepts of Corporate Social Responsibility (‘CSR’) and sustainability
are integrated in its Business focus.

Business Lines: -Yes Bank has four distinct business segments to effectively service the
differentiated needs of its targeted customers.

15
Corporate and Institutional Banking (C&IB): -To cater to the needs of large corporate &
instituti
institutional
onal clients,
clients, MNC’s,
MNC’s, government
government companies and PSU’s.
PSU’s. Bank targets
targets C&IB
customers through its multifunctional branches in the key metropolitican cities.

Emerging Corporate Banking (ECB): -It is dedicated to partner with growth-focused,

fast-paced enterprises, which are emerging as a leader in their respective business areas.

Business Banking: -To cater to the needs of the small and medium enterprises (SME),
Yes Bank has set up a dedicated business unit to focus on delivering superior banking
solutions specially designed to meet the varying and dynamic needs of its SME clients.

Retail
Retail Banking
Banking and Wealth Management:
Management: -The Bank intends to develop
develop Retail
Retail Banking
into a key value driver. Yes Bank offers its customers choice & convenience, reflected in
its branch layout & design, product feature /design, options of distribution channels and
superior technology enabled service quality. Yes Bank predominantly offers value added
retail
retail liabi
liabilit
lity
y and third
third party
party wealth
wealth manage
management
ment produc
products
ts as well
well as retail
retail asset
asset
offerings through its sales and service network linked to its branches.

16
Private Banking: - Yes Bank is focusing on personalized relationship banking for its top
end High Net worth customers, supported by structured financial solutions tailor-made to
suit the needs of such customers.

Product lines: - Yes Bank offers a wide range of fee-based products to corporate and
 business banking customers to ensure a high degree of cross-sell to clients.

Financial Markets: -Yes Bank financial markets was ranked second in the ‘Best for 
currency strategy’ and ‘best for technical analysis’ categories at the Asia Money 2005
foreign exchange poll for India.

Transaction Banking: -Yes Bank Transaction banking group has adopted a consultative
approach
approach and focus
focus on kno
knowle
wledge
dge and relati
relations
onship
hip banking
banking to enable
enable custom
customers
ers to
address strategic financial and operating needs in the domain of:
• Working capital and liquidity management

• Asset management

• Treasury integration

• Exposure and risk management

Yes Bank proposes to apply industry knowledge and superior technology for offering
innovative structured solutions integral to a company’s financial supply chain.

17
Yes International Banking: - It offers a complete suite of international banking products
and services,
services, driven by state-of-
state-of-the
the art technology,
technology, which includes
includes Debt, Trade finance,
corpor
corporate
ate financ
finance,
e, Invest
Investmen
mentt banking
banking and busine
business
ss advisor
advisory
y servic
services,
es, treasu
treasury
ry and
global Indian banking. The Bank also plans to leverage its international presence, for its
capital
capital raisin
raising
g activi
activitie
ties.
s. These
These servic
services
es will
will initi
initiall
ally
y be throug
through
h partne
partnersh
rships
ips with
with
international banks and financial institutions followed by the establishments of branches
and representative offices, as per regulatory approvals.

Brand Creation: - The Bank believes that its differentiation begins with its service and
trust mark ’YES’. ‘YES’ represents the bank true spirit of being service-oriented. The
‘YES’ brand creation
creation effort
effort is supported by ‘Triton
‘Triton Communicat
Communications’
ions’,, the principal
advertising agency and ‘Ad factors PR’, the Bank’s public relation consultant.

Key Members of Yes Bank Management Team

NAME DESIGNATION
Mr. Rana Kapoor Managing Director & CEO
Mr. Sunil Gulati Group President - C&IB, Transaction
Banking
Mr. Deepak Gaddhyan Group President GRM Team.
Mr. Sumit Gupta Country Head – Emerging Corporate
Banking

18
Mr. Alok Gupta
Mr. Rajnish Datta
Mr. Subir Bisht
Mr. Sanjay Aggarwal
Mr. Varun Tuli
Country Head – life sciences &
technology
Country Head –Small business banking
group
Chief Risk Officer
Country Head –Credit Risk, Business
Banking
President Business Banking

Key Highlights & Milestones of Yes Bank.

Nov 2003 Incorporation of YES BANK Limited

May 2004 RBI LiLicense toto co
commence ba
banking
business
Dec 2006 Ranked No.3 in the Business World
Survey of India’s Best listed Banks
Mar 2007 Ranked No.2 among New Private Sector
Banks in the Financial Express survey
Dec 2007 Won ‘Best CSR practice award 2007’
Dec 2007 Won ‘IT people award 2007’
Jan 2008 60 operational branches across India

19
Mar 2008 Ranked No.3 among New Private Sector
Bank
Bankss in the
the Finan
Financia
ciall Expr
Express
ess-E
-E&Y
&Y
survey & overall #1 on credit quality &
#2 on Growth
Apr 2008 67 operational branches across India

20
INDUSTRY PROFILE

The oldest bank in Indian Banking industry is the “State Bank of India” being established
as the “Bank of Bengal” in Calcutta in June 1806. The first fully Indian owned Bank was
the “Allahbad Bank”, which was established in 1865. By the 1900s, the market expanded
with the establishment of Banks such as “Punjab National Bank”, in 1895 in Lahore and
Bank of India, in 1906, in Mumbai. The “Reserve Bank of India” formally took on the
resp
respon
onsi
sibi
bili
lity
ty of regul
regulat
atin
ing
g the
the Indi
Indian
an banki
banking
ng sect
sector
or from
from 193
1935.
5. Afte
Afterr Indi
India’
a’ss
independence in 1947, the Reserve Bank was nationalized and given broader powers. In
the
the earl
early
y 1990
1990’s
’s the
the then
then Nars
Narsim
imha
ha Rao
Rao gove
govern
rnme
ment
nt emba
embark
rked
ed on a poli
policy
cy of 
liberalization and gave licenses to a small number of private Banks, which came to be
known as New Generation tech-savvy banks, which included banks such as Global Trust

21
Bank (the first of such generation banks to be set up) which later amalgamated with
Oriental
Oriental Bank of Commerce,
Commerce, UTI Bank (Now re named as Axis Bank), ICICI Bank and
HDFC Bank. This move, along with the rapid growth in the economy of India, kick 
started the Banking sector in India, which has seen rapid growth with strong contribution
from all the three sectors of Banks, namely
Government Banks,
Private Banks, and
Foreign Banks
The next stage for the Indian Banking has been set up with the proposed relaxation in the
norms for Foreign Direct Investment (F.D.I.), where all foreign investors in banks may be
given voting rights which could exceed the present cap of 10%, at present it has gone up
to 49% with some restrictions. The new policy shocks the banking sector in India
completely. Bankers, till this time, were used to the 4-6-4 method (borrowing at 4%; lend
at 6%; go home at 4) of functioning. The new wave ushered in a modern outlook and
tech-savvy methods of working for traditional Banks. All this led to boom in India.
People just not demanded more from their Banks but also received more.

In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake
in Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor 
has been allowed to hold more than 5% in the private sector Bank since the RBI
announced norms in 2005 that any stake exceeding 5% in the private sector banks would
need to be vetted by them. In (2007), banking in India is generally fairly mature in terms
of supply, product range and reach-even, though reach in rural India still remains a
challenge for the private sector and foreign Banks. In terms of quality of assets and
capital adequacy, Indian Banks are considered to have clean, strong and transparent
  balanc
balancee sheets
sheets relati
relative
ve to other
other Banks
Banks in compar
comparabl
ablee economi
economies
es in its region.
region. The
Reser
Reserve
ve Bank
Bank of Indi
Indiaa is an auto
autono
nomo
mous
us bod
body,
y, with
with mini
minima
mall pres
pressu
sure
re from
from the
the
government. The stated policy of the Bank on the Indian Rupee is to manage volatility
but without any fixed exchange rate and this has mostly been true.
With the growth in the Indian economy expected to be strong for quite some time
especially in its service sector-the demand for Banking services, especially retail banking,

22
mortgages and investment services are expected to be strong. One may also expect
M&A’s, takeovers, and asset sales.
Currently, India has 88 scheduled commercial banks (SCBs)
- 28 public
public sect
sector
or banks
banks (that
(that is with
with the
the govern
governmen
mentt of India
India holding
holding a stake
stake),
),
- 29 privat
privatee banks (the
(these
se do not have
have governm
government
ent stake
stake;; they may
may be publicl
publicly
y listed
listed
and traded on stock exchanges)
- And 31
31 for
foreeign banks.
They have a combined network of over 53,000 branches and 17,000 ATM’s.
According to a report by ICRA limited, a rating agency, the public sector banks hold 75%
of total assets of the banking industry, with the private and foreign banks holding 18.2%
and 6.5% respectively. The annual growth in bank credit to the commercial sector is at
25.4% as on March 31, 2007 and was lower than 27.2% against previous year. Till 2010,
retail banking is expected to grow at a CAGR (compounded average growth rate) of 28%
to touch a figure of INR 9,700 billion. This requires expansion and diversification of 
retail product portfolio, better penetration and faster service mechanism.

The report on Retail Banking industry in India covers industry segments like housing
loan, auto loan, personal loan, education loan, consumer durable loan, credit card and
regulatory frame work for retail Banks is also discussed. The report gives retail banking
industry’s
industry’s current performance
performance and future
future outlook.
outlook. Total 22 major retail
retail Banks in India
are covered in terms of their performance, strategy and outlook. In absolute terms, India’s
  banking sector enjoyed reasonable growth through the year to December 31 2007. In
local currency terms,
terms, total assets,
assets, total loans and total deposits
deposits increased by 23%, 21%,
and 26%, respectively. The loan/deposit, loan/asset ratio fell while the loan/GDP ratio
rose.

State Bank of India (SBI)

 State Bank of India is the India’s largest Bank. It has largest branch network all
over the country with its special products like

23
 • Personal Banking
Deposit Schemes
Personal Finance
• Agricultural/Rural Banking
Micro Credit
Regional Rural Bank 
•  NRI Services

• International Banking
Trade Finance
Merchant Banking
Correspondent Banking
• Corporate Banking
Mid Corporate Group
Project Finance
Small & Medium Enterprises (SME’s)
• Government Business
Public Provident Fund
SBI e-Tax
• Services
Internet Banking
Mobile Banking

The SBI’s powerful corporate banking formation deploys multiple channels to deliver 
integrated solutions for all financial challenges faced by the corporate universe. The
Corporate Banking group and the National Banking group are the primary delivery
channel
channelss for corpor
corporate
ate banking
banking product
products.
s. The Corpor
Corporate
ate Bankin
Banking
g Group
Group consis
consists
ts of 
dedicated Strategic Business Units that cater exclusively to specific client groups or 
specialize in particular product clusters. Foremost among these specialized groups is the
Corporate Accounts Group (CAG), focusing on the prime corporate and institutional
clients of the country’s biggest business centers. The others are the Project Finance unit

24
and the Leasing Unit. The National Banking Group also delivers the entire spectrum of 
corporate banking products to other corporate clients, on a nationwide platform.

Complete Range of Products and Services

The SBI offers an exhaustive range of financial products and services that answers any
 business or market circumstance, backed by an assublack expertise in customizing the
 product to meet the most sensitive specificities of each client and each business context.
Its team of highly skilled and experienced product specialists can help its customers in
forecast structure complex transaction requirements.

The SBI Edge

Commanding unsurpassed respect and legacy in the Indian financial expanse, the SBI is
committed
committed to provide
provide the financial solutions
solutions that extract
extract maximum value from business
business
and market situations.

While the Bank is strongly

strongly positioned
positioned to structure
structure financial
financial packages
packages that anticipate
anticipate the
changing business environment, its vast network-the world’s largest-ensures delivery
channels of unmatched reach, both in India and abroad.

Working Capital Finance

SBI offe
offers
rs work
workin
ing
g capit
capital
al fina
finance
nce to meet
meet the
the entir
entiree range
range of shor
shortt term
term fund
fund
requirements that arise within a corporate day to day operational cycle. The SBI working
capital loans help the companies in financing inventories, managing internal cash flows,
supporting supply chains, funding production, and marketing operations, providing cash
support to business expansion and carrying current assets.

SBI’s working finance products comprise a spectrum of funded and non-funded facilities
ranging from cash credit to structured loans, to meet the different demands from all
segments of industry, trade and the services sector. Funded facilities include cash credit,
demand loan and bill discounting. Demand loans are considered also under the FCNR (B)

25
(Foreign currency from Non Resident) scheme. Non-funded instruments comprise letters
of credit (inland and overseas) as well as bank guarantees (performance and financial) to
cover advance payments, bid bonds etc.

Project Finance
The SBI has formed a dedicated Project Finance Strategic Business Unit to assess credit
  proposals from and extend term loans for large industrial and infrastructure projects.
Apart from this, project term loans for medium sized projects and similar clients are
delivered through the CAG (Corporate Accounts Group) and NBG (National Banking
group).

In general, project finance covers Greenfield industrial projects, capacity expansion at

existing
existing manufactur
manufacturing
ing units,
units, constructi
construction
on ventures
ventures or other infrastructure
infrastructure projects.
projects.
Capital
Capital intens
intensive
ive busine
business
ss expansi
expansion
on and divers
diversifi
ificat
cation
ion as well
well as replac
replaceme
ement
nt of 
equipment may be financed through the project term loans.

Project finance is quite often channeled through special purpose vehicles and arranged
against the future cash streams to emerge from the project. The loans are approved on the
 basis of strong in house appraisal of the cost and viability of the ventures as well as the
credit standing of promoters.

Deferred Payment Guarantee (DPG)

SBI can extend deferred payment guarantees to industrial projects for obtaining imported
equipment. The DPG is a standby credit guaranteeing deferred payments, usually for 
 payments for capital goods, turnkey contracts etc.

Corporate Term Loan

Thee SBI
Th SBI corpor
corporat
atee term
term loans
loans can
can supp
suppor
ortt compa
company
ny in fundi
funding
ng ong
ongoi
oing
ng busi
busine
ness
ss
expan
expansi
sion,
on, repay
repayin
ing
g high
high cost
cost debt
debt,, techn
technol
ology
ogy up grada
gradati
tion,
on, R&D
R&D expen
expendi
ditu
ture
re,,
levera
leveragin
ging
g specif
specific
ic cash
cash stream
streamss that
that accrue
accrue into
into the company
company,, implem
implement
enting
ing early
early
retirement schemes and supplementing working capital. Corporate term loans can be

26
structured under the FCNR (B) scheme as well, with the option of switching the currency
denomination at the end of the interest periods. This will help you take advantage of 
global interest rate trends vis-à-vis domestic rates to minimize your debt cost. The Bank’s
Ban k’s
corpor
corporate
ate term
term loans
loans are genera
generall
lly
y availa
available
ble for tenure
tenuress from
from three
three to five
five years,
years,
synchronized with your specific needs. SBI corporate term loans can have a bullet or 
 periodic repayment schedule as required by the client. The repayment mode may be
linked to the cash accruals of the company. The Bank’s expert credit crew gauges the
applicant’s particular fund requirements and evaluates the company’s credit worthiness,
factoring in the cash flows generated by it.

Structured Finance
SBI structured finance involves assembling unique credit configurations to meet the
complex fund requirements of large industrial and infrastructure projects. Structured
finance
finance can be a combination
combination of funded and non-funded
non-funded facilities
facilities as well as other credit
enhan
enhance
ceme
ment
nt tool
tools,
s, leas
leasee cont
contra
ract
ctss for
for inst
instan
ance,
ce, to fit
fit the
the mult
multii laye
layerr fina
financ
ncia
iall
requirements of large and long-gestation projects.
Being India’s largest bank and with the rich experience that it brings with it, SBI
commands formidable expertise in engineering financial packages that address complex
requirements with minimum risk. Further, SBI has firm relationships across the financial
map of the world, which can be leveraged to structure solutions that may necessitate the
 participation of several credit agencies.

Dealer Financing
SBI extends financial support to the corporate distribution network, by providing both
working capital finance and term loans to select dealers of identified companies. This
gives dealers to leverage their business relationship with major corporate to avail low
cost credit. Also, this type of financial solutions allows the corporate negotiate a better 
  price with dealers. Dealer financing may be extended in the bill discounting form or 
simply as cash credit.

Channel Financing

27
Channel financing is an innovative finance mechanism by which the bank meets the
various fund necessities along customer supply chain at the supplier’s end itself, thus
helpin
helping
g them
them sustai
sustain
n a seamle
seamless
ss busine
business
ss flow
flow along
along the arteri
arteries
es of the enterp
enterpris
rise.
e.
Channel finance ensures the immediate realization of sales proceeds for the SBI client’s
supplier, making it practically a cash sale. On the other hand, the corporate gets credit for 
a duration equaling the tenure of the loan, enabling smoother liquidity management. SBI
has the world’s largest banking network of over 9,000 branches and this enables it to
deliver the financial solution at suppliers doorstep, across the span of the country.

Equipment Leasing
The SBI’s has deployed a dedicated strategic business unit for lease financing that is
richly experienced in arranging lease contracts for procuring expensive equipment for 
clients
clients project or plant. At SBI, lease agreements
agreements as stand alone contracts or as part of a
structured package are arranged.

Loan Syndication
The SBI leverages its vast network of relationships to arrange syndicated credit products
for
for corpor
corporat
atee clie
client
ntss and
and indu
indust
stri
rial
al proj
projec
ects
ts.. With
With its
its rich
rich expe
experi
rien
ence
ce and
and stro
strong
ng
reputation, SBI’s syndication desk can assemble large loan packages involving a ring of 
repute
reputed
d financ
financial
ial entit
entities
ies,, domest
domestic
ic and intern
internati
ationa
onal,
l, that
that match
match the large
large credit
credit
requirements of infrastructure projects.

Industrial Credit& Investment Corporation of India ICICI Bank 

ICICI Bank is India’s second largest bank with total assets of Rs.3, 997.95 Billion
(US$100 billion) at March 31, 2008 and profit after tax of Rs.41.58 billion for the year 
ended March 31, 2008. ICICI Bank is second amongst all the companies listed on the

28
Indian stock exchanges in terms of free float market capitalization. The Bank has a
network of about 1308 branches and 3950 ATMs in India and presence in 18 countries.
ICICI Bank offers a wide range of banking products and financial services to corporate
and retail customers through a variety of delivery channels and through its specialized
subsidiaries and affiliates in the areas of Investment banking, life and non life insurance,
venture capital and asset management. The Bank currently has subsidiaries in the United
Kingdom, Russia, and Canada, branches in United States, Singapore, Bahrain, Hong
Kong, Sri Lanka, Qatar and Dubai International finance centre and representative offices
in United
United Arab
Arab Emirat
Emirates,
es, China,
China, South
South Africa
Africa,, Bangla
Banglades
desh,
h, Thail
Thailand,
and, Malays
Malaysia
ia and
Indonesia. UK subsidiary has established branches in Belgium and Germany.

ICICI Bank’s equity shares are listed in India on Bombay Stock Exchange and the
  Nation
National
al Stock
Stock Exchang
Exchangee of India
India Limite
Limited
d and its Americ
American
an Deposi
Depositar
tary
y Receipt
Receiptss
(ADR’s) are listed on the New York Stock Exchange (NYSE).

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI’s shareholding in ICICI Bank 
was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity
offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank’s acquisition
of Bank of Madura Limited in all stock amalgamation in fiscal 2001, and secondary
market sales by ICICI to institutional investor in fiscal 2001 and fiscal 2002. ICICI was
formed to in 1955 at the initiative of the World Bank, the Government of India and
representatives of Indian Industry. The principal objective was to create a development
financial institution for providing medium term and long term p roject financing to Indian
 businesses.

In the 1990s, ICICI transformed its business from a development financial institution
offering only project finance to a diversified financial services group offering a wide
range of products and services, both directly and through a number of subsidiaries and
affiliates like ICICI Bank in 1999, ICICI become the first Indian company and the first
 bank or financial institution from non-Japan Asia to be listed on the NYSE.

29
After consideration of various corporate structuring alternatives in the context of the
emerging competitive scenario in the Indian Banking industry, and the move towards
universal banking, the managements of ICICI and ICICI Bank formed the view that the
merger of ICICI with ICICI Bank would be the optimal legal structure for the ICICI
group
group’s
’s univ
univer
ersa
sall banki
banking
ng stra
strate
tegy
gy.. Th
Thee merg
merger
er woul
would
d enha
enhance
nce valu
valuee for
for ICIC
ICICII
shar
shareh
ehol
olde
ders
rs thro
through
ugh the
the merg
merged
ed entit
entity’
y’ss acce
access
ss to low
low cost
cost depos
deposit
its,
s, grea
greate
ter 
r 
opportunities for earning fee based income and the ability to participate in the payment
system and provide transaction banking services. The merger would enhance value for 
ICICI Bank shareholders through a large capital base and scale of operations, seamless
access to ICICI’s strong corporate relationships built up over five decades, entry into new
 business segments, higher market share in various business segments, particularly fee-
 based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 
2001, the boards of directors of ICICI and ICICI bank approved the merger of ICICI and
two of its wholly-owned retail finance subsidiaries, ICICI personal financial services
limited and ICICI capital services limited with ICICI bank. The merger was approved by
shareholders of ICICI and ICICI bank in January 2002, by the high court of Gujarat at
Ahmedabad in March 2002, and by the high court of judicature at Mumbai and the
Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group’s
financing and banking operations, both wholesale and retail, have been integrated in a
single entity.

30
OBJECTIVE OF THE STUDY

Main objective:
Objective of the study is to look for the banking opportunities in FCRA accounts of 
charitable institutions for the Yes Bank.
With the increasing number of organizations taking the FCRA registration, Bank is
interested in having the business with the NGO’s in Delhi and NCR.

1. Objective of the study aims at the 360 degree knowledge to the target business. It
includes the MHA (Ministry of Home Affairs), NGO’s and various banks giving such
type of services to take detail know how and should reach at a decision to be taken by the
 bank after concluding the study.

2. To operate the FCRA accounts in accordance with the rules and guidelines mentioned
in the FCRA 1976.

31
RESEARCH METHODOLOGY

Research in general refers to the search of knowledge. One can also define research as a
scientific & systematic collection of information.
In simple words research is the careful investigation or enquiry of markets especially
through search for new facts in any branch of knowledge.

Analytical Tools

Micros
Microsoft
oft Excel
Excel (Pivot
(PivotCha
Chart
rt Reports
Reports).
). A PivotC
PivotChar
hartt Report
Report is an
interactive chart that quickly combines and compares large amounts of 
data from tables in excel. PivotChart report was used here to analyze
related totals, because there was a long list of figures to sum and there
was a need to compare several facts about each figure. Because a
PivotChart report is interactive, it has flexibility to change the
view
view of the
the data
data to see
see more
more detai
details
ls or calc
calcul
ulat
atee diff
differ
eren
entt
summaries, such as counts or averages. Drop fields feature was

32
extensively used for the report creation. Essentially it is an area in a PivotChart report
where we can drop fields from the Field List dialog box to display the data in the field.

DATA COLLECTION

Data can be collected by using two well known methods: Primary & Secondary. In
 primary data collection, you collect the data yourself using methods such as interviews
and questionnaires. The key point here is that the data you collect is unique to you and
yourr research
you research and, until
until you publish
publish,, no one else
else has access to it. There
There are many
methods of collecting primary data and the main methods include:
• Questionnaires

• One-to-one interviews

• Group interviews

• Observation

• Case-studies

• Diaries

• Critical incidents

• Portfolios

Secondary data is data that has already been collected by someone else for a different
 purpose to yours. For example, this could mean using:
• Data collected by a hotel on its customers through its guest history system

33
 • Data supplied by a marketing organization

• Annual company reports

• Government statistics.

Primary data collection method used for this project.

I used questionnaire method which is also known as scheduling method for primary data
collection in the research process. To know the exact details regarding FCRA accounts in
Banks 360 degree approach is being used as the FCRA department, Banks, and NGO’s
are surveyed to take the required

Secondary Data is also used for the purpose of completion of project which includes
Internet, Centre for policy Research, and FCRA department.

34
SAMPLING AND SAMPLING DESIGN

The procedure by which a few fields are chosen from the data to be studied in such as
way that the sample can be used to estimate the same characteristics in the total is
referred to as sampling.
The advantages of using samples are that it is much less costly, quicker and, if selected
 properly, gives results with known accuracy that can be calculated mathematically. Even
for relati
relatively
vely small sample
samples,
s, accurac
accuracy
y does
does not suffer
suffer even though
though precis
precision
ion or the
amount of detailed
detailed information
information obtained, might. These are important
important considerations,
considerations,
since most research projects have both budget
b udget and time constraints.

Sampling process is taking a sample out of the universe population to take a decision
regarding the population. Instead of surveying the whole population we take only a few
 persons for our topic to have a general idea of the subject related.

In the project I took a sample of three Banks for a general idea of the FCRA accounts and
made our study reach a conclusion.
These three banks are

35
 1. HDFC BA
BANK 

2. STANDARD CHARTERED

3. CORP
CORPOR
ORAT
ATIO
ION
N BANK 
BANK 

For the charitable institutions and NGO’s who are reporting to the FCRA Department to
 be studied I took a sample of 11 organizations from the NCR.

TIME PERIOD OF STUDY

June, 9-14, 2008

Gather
Gathering
ing inform
informati
ation
on regard
regarding
ing the Act,
Act, Rules,
Rules, Bill,
Bill, with
with help
help of the second
secondary
ary
mediums.

June, 16-18, 2008

Meeting FCRA, Ministry of Home

Ho me Affairs official
collecting the necessary &current information regarding the Act.

June, 19-23, 2008

Visiting various banks like Standard Charted Bank, HDFC Bank, Corporation Bank and
other banks which offer special services to the charitable institutions in regards to FCRA
& collecting the necessary details.

36
June, 24-4 July, 2008

Meeting the officials of various charitable trusts and such institutions who are registered
with FCRA and having the present banking arrangements.

AREAS OF STUDY

Study of the project started from the Regional office of the Bank at 48, Nayaya Marg
Chanakyapuri New Delhi. Main centre of the study was around the office like visiting the
FCRA office from the Bank and
an d then meeting the different charitable institutions and also
the different Banks providing the same services in the area of Delhi and NCR.
Area includes the different parts of New Delhi few of them are
• Connaught Circus
• Safdarjung Enclave

• Janakpuri

• Ashok palace

• Bhai Veer Singh Marg

• Lodhi Road

37
ANALYSIS AND INTERPRETATION
INTERPRETATION

1. Foreign
Foreign receipt
receipt in
in the
the present
present year.

noforeig
foreign
n
foreig
foreign reci
never

38
  No Foreign Receipt in Present 27%

Foreign Receipt in Present 73%

Never received foreign funds 0%

This pie chart shows that only 27% of the organizations have not received any foreign
funds in the current year and 73% organizations are receiving funds continuously and
there is no organization (0%) which has
h as never received any foreign fund so far.

2. Donor
Donor from
from which
which coun
country
try..

Donor from all over the world. 55%

Donor only from USA. 27%
Donor from USA & others. 18%

39
The figure gives an idea of the sample that 55% of the organizations surveyed are
receiving funds from all over the world where as the 27% organizations are having
foreign receipts or donations or members sending funds to India are only from USA. 18%
of the organizations are as such they receiving funds from USA & others like UK,
 Netherlands etc.

3. Dealing with which Bank for FCRA accounts.

Public Sector 
Private Sector 
Foreign Bank

40
Account in Public Bank. 55%
Account in Private Bank. 27%
Account in Foreign Bank. 18%

From the study of various organizations it has been concluded that the 55% organizations
are dealing with the public sector Banks which include Indian overseas Bank, State Bank 
of Hyderabad, PNB, P&S Bank and 27% organizations reported to have their Bank 
account with the private sector Banks it has ICICI Bank, Federal Bank, Catholic Syrian
Bank Ltd. Only 18% of the organizations are having Bank Account in Foreign Banks
which has ABN AMRO, American express Bank.

4. Satisfaction level with present Banker.

41
 Poor 9%
Average 9%
Good 73%
Excellent 9%

From the figure shown above it is clear that most of the organizations visited are satisfied
with the services of present Banker as the 73% of the institutions have marked their 
Banker as good service provider and 9% each has been given to the Poor service,
average,& excellent respectively.

5. Foreign Exchange conversion charges taken by Bank.

No charges
Nominal
Heavily

No extra charges. 27%

Charge, but Nominal. 55%
Charge Heavily. 18%

42
Analysis for the foreign exchange charges is shown in the figure that 27% of the
organizations are not paying any extra charges for the foreign receipts in their FCRA
accounts, 55% of the organizations are paying the charges but they take them as a
nominal charge for the transaction, only 18% of the organizations are paying heavily on
the foreign exchange conversion to the Banks.

6. More Services desired from the Banking sector.

Just Satisfied need more. 46%

Well satisfied. 27%
Desire more benefits. 27%

43
Most of the Organizations visited report to be just satisfied with the services provided by
their present banker as the figure reaches up to 46% and also they need more from the
 banking industry. 27% of the institutions reported to be well satisfied with their banker,
same is the percentage (27%) in the category which desires more from the banking sector 
in their product.

7. Investment advisory an important value added.

Investment advisory required. 55%

Own separate advisory body. 27%
Already getting. 18%

44
Figure above shows about the 55% of the organizations are interested in the investment
advisory and 27% of the organizations are having their own separate body for the purpose
of investments, 18% of the organizations are already receiving such types of advices.

8. Reaction to proposed FCR bill 2006.

In favor of Bill 2006. 18%

Against the Bill 2006. 36%
Partially favor partially against. 46%

A major proportion of the organizations have two sided opinion on the FCR Bill 2006 as
few of the proposals like multiple bank accounts instead of single bank account at

45
  present, are good for the organizations but few proposals are not favorable for the
working of the organizations so it is 46% who are partially favoring it and partially
opposing it. But 36% of the organizations are totally against the Bill, & 18% are in the
favor of the Bill they say what government do is fine.

9. Requirement in rules of working with Fcra.

No Requirement to change in Rules. 82%

Required to be amended. 18%

Most of the organizations are well satisfied with the current rules of the department as
82% of the organizations do not need any change in rules of FCRA only a small
 proportion i.e. 18% wants to have some amendments in the rules of FCRA.

46
 10. Auditing done by FCRA Department for the organization.

No Auditing by FCRA
Auditing by FCRA in Past

No auditing by FCRA. 82%

Auditing in Past. 18%

47
 According to the 82% organizations in the NCR area no auditing is done by the FCRA
department separately for their organizations, the only thing is they file the FC-3 return at
the end of each year audited by the certified chartered accountant and for the 18%
organizations FCRA department has done auditing some time in past.

11. Problem faced in working with FCRA.

Problem faced
No problem.

No Problem faced 100%

Problem Faced 0%

48
Survey
Survey tells there is no proble
problem
m in workin
working
g for the organi
organizat
zation
ionss with
with the FCRA
department as 100% of the organizations told that there is no problem in working as per 
rules of MHA.

12. Response level of FCRA department.

Poor 0%
Average 18%
Good 82%
Excellent 0%

49
 Survey shows that FCRA department is very good at response level to the organizations
as 82% of the respondents have marked as good for the FCRA department & only 18% of 
the organizations mark them as average as they said officers sitting in the FCRA office
are not fully trained they should be perfect in that.

13. Use of online services for the filling of returns by the NGO’s.

Using Online Services 45%

Not Using Online Services 55%

50
 Figure tells about the use of online services for contacting the FCRA department for 
filling the FC-3 returns or other returns is about 45% by the NGO’s and 55% of the
 NGO’s are just using the traditional way of filling the return to the FCRA department.

14. Reaction on the Proposed Renewal Fees on the FCRA registration in Bill
2006.

Against the Bill. 64%

Favor the Bill. 9%
Neutral for Bill. 27%

51
Figure tells about the view point of the organizations towards the proposal of renewal
fees on the certificate of the FCRA after every five years in order to eliminate the
organizations from the certification those who are not responding to the department
regularly, 64% of the organizations are against the renewal proposal as they are regularly
reporting to the department, 9% are in favor as they say whatever government do is
alright, 27% of the sample respond that they are neutral towards Bill2006.

Comparison of the FCRA accounts offered by different Banks.

Standard Chartered Bank 

• Savings Account

• Cash withdrawal allowed

• Special team targeting NGO’s for FCRA accounts.

• Compliance team at Bombay is reporting RBI and central government for MIS of 
the accounts.
• Special care in case of Prior permission obtained by organization from central
government.

HDFC Bank 

• Savings Account

• Cash withdrawal not allowed

• Consultancy services as extra benefits to the account.

• Special team for FCRA accounts.

• Reporting regularly to central government and RBI.

52
 • Special care in case of Prior permission obtained by organization from central
government.

Corporation Bank 

• Savings Account

• Cash withdrawal allowed

•  No special team.

• International Banking Division (IBD) is contacting central government for FCRA

accounts MIS.
• Special care in case of Prior permission obtained by organization from central
government.

CONCLUSION AND SUGGESTION

CONCLUSION

On the basis of study it is concluded that going towards the FCRA product will be a good
move by the bank as there is large number of NGO’s in NCR region which are actively
 performing their projects, as they are receiving foreign funds through FCRA accounts in
 banks then it can be a source of foreign funds for the bank. There were 1120 FCRA
accounts which reported to the department in year 2005-06 and these accounts have
received 1557 crores in NCR.

SUGGESTION

VANI (Voluntary Action Network India) is the active NGO forum in NCR, It is
 better to introduce our new product through Forum and target our potential customers
through this platform. In this forum most of the NGO’s and charitable institution are

53
members, in this way Yes Bank can have business with them. Special team is required to
target the FCRA accounts of public sector banks as they are not having any special team
to handle them, but private sector banks like Standard Chartered, HDFC are having
special team for this segment. YBL need to have
• Special FCRA product

• Special team

• Target to public sector banks having FCRA accounts

• Relationship with FCRA department

54
 CHARITABLE
INSTITUTIONS.
FCRA

DIFFERENT
BANKS

55
LIMITATIONS
LIMITATIONS OF THE STUDY

1. General survey is more biased: General Survey is more biased because few
charitable institutions were not ready to give the exact financial details.

2. Less responsi
responsive
ve commun
communication:: Gene
ication Genera
rall Surv
Survey
ey was
was foun
found
d to be less
responsive because of the reason that institutions &organizations did not want to
respond to the questionnaire due to lack of time & non willingness.

3. Time consuming: The General Survey was time consuming because it take time
to reach to different charitable institutions & ask them certain related questions in
there different areas.

56
ANNEXURE
In the project I took the sample of 11 charitable institutions in the NCR for the purpose of 
know how of the FCRA account working.
1. CARI
CARITA
TAS
S INDI
INDIA
A
CBCI Centre, Ashok Palace,
Mr. N.M.Valan (Finance Manager)
2. ADOPT
606, Ansal Bhawan K.G.Marg
Ms. Alpana Mukherjee
3. DEEPALYA
46, insti. Area, D-Block Janakpuri
Mr. Mathew Jose (Deputy Director Finance)
4. CHETANALYA
9-10, Bhai vir Singh Marg
Mr. Thomas K.S.(Finance Manager)
5. Centre for Women’s Development Studies
25, Bhai vir Singh Marg
Mr. V.N. Soumya Narayan
N arayan (Administrative Officer)
6. Delhi Bible Fellowship
22, Bhai vir Singh Marg
Mr. Samson Masih (Administrative Assistant)
7. Marthoma Church Society
26, Bhai vir Singh Marg
Rev. Jayan Thomas
8. National Institute of Urban Affairs
India Habitat Centre 4B 1st floor 
Mr. Diwan Singh (Senior Accountant)
9. Bhai Vir Singh Sahitya Sadan

57
 Bhai vir Singh Marg
011-23363510
10. Foundation for Panjab Studies
Bhai vir Singh Marg
011-23347919
11. Science Olympiad Foundation
B-8 Taj apartments Safdarjung
Mr. Partap

QUESTIONS FOR CHARITABLE INSTITUTIONS.

1. Any sort of foreign income to the trust or any foreign donor?

2. Foreign donor is from which country?

3. Dealing with which Bank for the foreign receipt?

4. Satisfaction level with the services provided by your present Banker!

a) Poor 
 b) Average
c) Good
d) Excellent
5. What type of services is desired from the Bank?

6. Reactions to the F.C.R bill, 2006.

7. Any requirement regarding FCRA by you.

8. Any auditing done by the FCRA department?

9. Online services given by the FCRA department is helpful to organization.

a) Yes
 b) No

58
 10. Fees on the FCRA registration is proposed in the bill 2006.What is your reaction to
that?
11. Response level of the FCRA department to the queries and filling of different returns?
a) Poor 
 b) Average
c) Good
d) Excellent
12. Any problem faced in working of organization with rules of FCRA in FC-3 or etc.

FCRA DEPARTMENT QUESTIONS.

1. Basi
Basicc purp
purpos
osee of FCR
FCRA
A 1976
1976??

2. Any
Any chan
change
ge in
in law
law afte
afterr 1976?
1976?

3. What
What is the status
status of Bill
Bill 2006?
2006?

4. Reaction
Reaction of charita
charitable
ble institut
institutions
ions after
after the
the proposed
proposed Bill
Bill 2006?

5. Banks having the FCRA

FCRA accounts
accounts have
have to report to RBI or to FCRA?

6. Auditing
Auditing process
process by the
the FCRA to the
the charitable
charitable insti
institutio
tutions?
ns?

7. Single
Single bank account
account is allowed
allowed for receivi
receiving
ng the foreign
foreign funds.
funds. Why?
Why?

8. Fees structu
structure
re for the
the registrat
registration
ion with
with FCRA or Prior Permission
Permission..

9. Any plan
plan for
for new
new offi
offices
ces in Indi
India?
a?

10. 30321 registered associations in 2005 how many of them are reporting
reporting to you?

11. What are the powers to the officer while granting

granting the registration?

59
 12. Requirements for obtaining
obtaining the registration
registration from FCRA?

13. “Speculati
“Speculative
ve Business” is not allowed
allowed out of the foreign
foreign contribution
contribution what is the
checking process followed for that?

14. Banks having FCRA accounts have to report regularly

regularly are they reporting
reporting to you?

15. Any specifications

specifications for opening account in
in specific Bank?

QUESTIONS FOR BANKS.

1. What
What type
type of servic
services
es your Bank is providi
providing
ng to the Charit
Charitabl
ablee Instit
Instituti
utions
ons and
 NGO’s?

2. Do you have
have a separate
separate team targetin
targeting
g the NGO’s/chari
NGO’s/charitable
table instit
institution
utions?
s?

3. Is that
that different
different from
from the
the regular
regular services
services on
on saving/cur
saving/current
rent account?
account?

4. Do you have
have FCRA account opened for
for these
these NGO’s/cha
NGO’s/charita
ritable
ble institut
institutions?
ions?

5. How difficul
difficultt is it to change
change from
from one Bank to
to the other
other for your
your present
present customer 
customer 
(NGO’s/charitable institutions)?

6. How much
much is the
the operation
operation difficul
difficulties
ties in the reporti
reporting
ng of FCRA
FCRA accounts?
accounts?

7. Are you report

reporting
ing to the FCRA
FCRA department
department regular
regularly
ly for your
your FCRA custome
customers?
rs?

8. How much
much servic
servicee oriente
oriented
d are these
these account
accounts?
s?
9. Where does the Bank earn from these accounts-foreign exchange
conversions/current account floats income/charges on transaction/investment of 
surplus funds?

60
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