Thursday 15 June 2017

Around 2,000 NGOs yet to validate FCRA designated accounts, says govt

Around 2,000 NGOs and institutions have not validated their foreign contribution designated accounts with banks, prompting the government to ask them to do it in a fortnight.

The Ministry of Home Affairs (MHA) has said that all NGOs and institutes registered under the Foreign Contribution Regulation Act (FCRA) should receive donations from abroad in a single designated bank account.

According to a latest analysis by the MHA, 2,025 NGOs have not yet validated their FCRA designated accounts. "It is seen that a number of NGOs have not validated their foreign contribution designated accounts causing problems for the banks to comply with the FCRA provisions that they (banks) report to the central government within 48 hours of such receipt or utilisation of foreign contribution," a recent MHA circular said.

"These associations are required to validate their foreign designated accounts and also the utilisation accounts within 15 days and send the details, including the bank branch, code, account number, IFSC etc.," it said.

The NGOs include Bangalore Rural Educational & Development Society, Bangalore Oniyavara Seva Coota and Hemophilia Society's Bengaluru chapter. The NGOs and institutions that find a place in the list also include Indian Red Cross Society, Tirumala Tirupati Devasthanam and SEWA among others.

The latest circular is part of a series of measures adopted by the NDA government to streamline foreign funds received by the NGOs and institutions. Last month, the MHA had asked 5,845 NGOs to open their accounts in banks having core banking facilities and provide details to allow security agencies to monitor it on a real time basis.

The directive to the NGOs came after an examination found that many of them maintain their accounts in cooperative banks or those without core banking facilities. It was seen as an obstacle by authorities dealing with NGOs in speedily detecting any discrepancies and that is why the NGOs have been asked to open their accounts in nationalised banks or private banks which have core banking facilities.

Source: http://m.dailyhunt.in/news/india/english/deccan+herald-epaper-deccan/around+2+000+ngos+yet+to+validate+fcra+designated+accounts+says+govt-newsid-68861245

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