New norms to monitor foreign funding to NGOs

NEW DELHI: To monitor the flow of foreign funds, the government is amending norms that will stipulate all NGOs to have dedicated accounts in banks with core-banking

NEW DELHI: To monitor the flow of foreign funds, the government is amending norms that will stipulate all NGOs to have dedicated accounts in banks with core-banking facility.

HT Image

The facility allows networked branches to access account information on real-time basis.

“The government is amending rules for receiving foreign contribution which will be notified soon,” said a senior government official on condition of anonymity.

There are around 33,000 NGOs registered under the Foreign Contribution Regulation Act, which can receive foreign funds.

As per the proposed norms, the funds received by NGOs in these accounts cannot be transferred to any other account.

However, there are as many as 5,000 NGOs with their FCRA accounts in banks which don’t have core-banking facilities. This makes it difficult for the government to monitor any violation of norms.

All NGOs whose expenses are Rs 10 lakh or more in three preceding years have to register under the FCRA, the official said.