Crackdown on FCRA violation: NGO receiving foreign funds must open accounts in these banks

The ministry order stated that the step has been taken to ensure that such funds are not utilised for activities detrimental to the national interest.

In a bid to bring transparency into foreign funds flowing into India and check FCRA violations, the home ministry has directed all NGOs, business entities, and individuals who receive funds from abroad to open accounts in any of the 32 designated banks.

There have been instances in the past where the foreign funds received by certain entities could not be accounted and there were also gross violations of FCRA. There were also suspicions that the funds were being misused. This order by the home ministry would ensure that the funds could now be tracked and those receiving it would be answerable to the utilisation of the funds.

The ministry order stated that the step has been taken to ensure that such funds are not utilised for activities detrimental to the national interest.

The directive to the NGOs, companies, and individuals to open foreign contribution accounts in banks, which are integrated with the central government's Public Financial Management System (PFMS), came for providing a higher level of transparency and hassle-free reporting compliance, according to the ministry order, accessed by the PTI.

Ever since the NDA government assumed power in 2014, it has come down hard on NGOs receiving foreign aid. The Narendra Modi-led government tightened the rules for NGOs and took action against all such entities for violation of various provisions of the FCRA 2010 which include non- filing of annual returns as mandated in the law.

Last week, Union Minister of State for Home Kiren Rijiju told Parliament that the registrations of 18,868 NGOs were cancelled between 2011 and 2017 for violating laws. Following the action, foreign funding to Indian NGOs has also come down drastically--from Rs 17,773 crore in 2015-16 to Rs 6,499 crore in 2016-17.

Rijiju had said the quantum of foreign funding received by NGOs in India in the last three years were: Rs 15,299 crore in 2014-15, Rs 17,773 crore in 2015-16 and Rs 6,499 crore in 2016-17.

The 32 banks where NGOs, individuals and entities can open their accounts are:

1. Abu Dhabi Commercial Bank
2. ICICI Bank
3. The Cosmos Co-Operative Bank
4. Bank of Baroda
5. State Bank of India
6. South Indian Bank
7. IDBI Bank
8. Central Bank of India
9. Corporation Bank
10. Karur Vysya Bank
11. Tamilnad Mercantile Bank Ltd
12. The Catholic Syrian Bank Ltd
13. HDFC Bank
14. UCO Bank
15. IndusInd Bank Limited
16. City Union Bank
17. Syndicate Bank
18. Allahabad Bank
19. The Jammu and Kashmir Bank Ltd
20. Punjab National Bank
21. Allahabad UP Gramin Bank
22. DCB Bank Ltd
23. Manipur State Co-op Bank
24. Vijaya Bank
25. Bombay Mercantile Co-operative Bank Ltd
26. Yes Bank
27. Oriental Bank Of Commerce
28. Dena Bank
29. Bank of Maharashtra
30. Canara Bank
31. Andhra Bank
32. Axis Bank

OneIndia News with PTI inputs