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30/01/21 13:55 PM IST

Source: The Hindu

India tightens oversight on funds received by NGOs

In news

The Ministry of Home Affairs (MHA) has laid down a charter for banks which says that “donations received in Indian rupees” by non-governmental organisations (NGOs) and associations from “any foreign source even if that source is located in India at the time of such donation” should be treated as “foreign contribution”.

Changes
  • FCRA regulates foreign donations and ensures that such contributions do not adversely affect the internal security of the country.
  • All NGOs seeking foreign donations have to open a designated FCRA account at the SBI branch by March 31.
  • The NGOs can retain their existing FCRA account in any other bank but it will have to be mandatorily linked to the SBI branch in New Delhi.
Penal provisions
  • Any violation by the NGO or by the bank may invite penal provisions of The FCRA, 2010.
  • ” It added that “donations given in Indian rupees (INR) by any foreigner/foreign source including foreigners of Indian origin like OCI or PIO cardholders” should also be treated as foreign contribution.
Foreign Contribution (Regulation) Act, 2010
  • FCRA regulates foreign donations and ensures that such contributions do not adversely affect the internal security of the country.
  • The Act, first enacted in 1976 was amended in the year 2010 and then 2020.
  • It was amended by Parliament and a new provision that makes it mandatory for all NGOs to receive foreign funds in a designated bank account at the State Bank of India’s New Delhi branch was inserted. 
Source: The Hindu

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