Government all set to change rules for foreign funding of NGOs


NEW DELHI: Tightening the noose around delinquent NGOs, the Centre is all set to amend the Foreign Contribution Regulation Rules making it mandatory for all voluntary organisations to have dedicated accounts only in banks with core banking facilities for their real-time access.

The home ministry is also making rules to ensure that no NGO is allowed to get foreign funds under the prior permission category more than once.

The move comes considering the fact that the Amnesty International India got foreign funds under the prior permission category at least thrice, which has made the government jittery, official sources said.

The new Foreign Contribution Regulation Rules are expected to be notified soon.

There around around 33,000 NGOs which were registered under the Foreign Contribution Regulation Act. However, many of them do not have their FCRA accounts in banks with core banking facilities.

Many NGOs have their FCRA accounts in cooperative banks or state governments-owned apex banks or banks which do not have core banking facilities.

The home ministry now wants that all FCRA registered NGOs mandatorily have their accounts in either nationalised banks or in a few private banks which have core banking facilities.

This would allow the security agencies to access the accounts of NGOs on real time basis, the sources said. Government will also tell all NGOs whose expenses are Rs 10 lakh or more in three preceding years have to register under the FCRA, they added.

(This story has not been edited by MaStyle Care staff and is unedited, unformatted feed from the TOI.)

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