Following multiple petitions by NGOs in various courts stating that the poor implementation of the recently amended Foreign Contribution Regulation Act (FCRA) had tied their hands in the middle of the Covid-19 pandemic, the government has extended the deadline for conforming to the new rules to June 30. The amended FCRA has made it mandatory for all NGOs receiving foreign aid to open an account in State Bank of India’s New Delhi branch and the government, through an order in October 202...

The union home ministry relaxed the norms for NGOs mandated to maintain FCRA account with the State Bank of India (SBI) under Foreign Contribution Regulation Act (FCRA). In a 5-page-order, MHA stated, “The “FCRA Account” holder shall have complete freedom to transfer the foreign contribution (FC) received in “FCRA Account” opened in SBI to another “FCRA Account.” The SOPs further noted that SBI main branch at New Delhi (NDMB) will not levy any charges...

Non-Government Organisations (NGOs) receiving substantial financing from the government are bound to give information to the public under the RTI Act, the Supreme Court held on Tuesday. The top court said that institutions like schools, colleges and hospitals which receive substantial aid from the government both directly or indirectly in the form of land at discounted rate are also bound to give information to the citizens under the Right to Information (RTI) Act. A bench of Justices Deep...

Union 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, within a month for higher level of transparency. According to the ministry order, 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 has...

The Ministry of Home Affairs has issued notice to over 1,200 NGOs across the country, asking them to validate their bank accounts where they receive foreign funds. They have been asked to submit expenditure details of the last four or more years on the suspicion of violating foreign funding norms. The failure to regulate the bank accounts may lead to cancellation of their licences to receive foreign funds. The circular from the ministry directs all NGOs registered under the Foreign Contrib...

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