New Delhi: The Home Ministry has directed 3,768 NGOs across the country to validate their foreign contribution designated accounts with banks, failing to which can earn a penalty. The ministry said in a circular that all NGOs which were registered under the Foreign Contribution Regulation Act (FCRA) should receive donations from abroad in a single designated bank account.
As a number of non-profit organisations do not validate their foreign contribution designated accounts which cause problems for the banks to comply with the FCRA provisions. Banks that have to report to the Central government within 48 hours of such receipt or utilisation of foreign contribution.
“These associations are required to validate their foreign designated accounts and also the utilisation accounts immediately and send the details, including the bank branch, code, account number, IFSC etc,” Joint Secretary (Foreigners) in the Home Ministry, Mukesh Mittal said.
The Ministry also announced a list of 2,025 NGOs which have not yet validated their FCRA designated accounts. The Modi government has already cancelled the registrations of more than 10,000 non-governmental organisations in the last three years for alleged non-filing of annual returns as mandated in the FCRA.
Furthermore, renewals of more than 1,300 NGOs were denied in recent past for allegedly violating various provisions of the FCRA. The government also directed the NGOs to have their account in banks with all core facilities.
The action was taken after it was detected that many NGOs have their bank accounts in cooperative banks or state government-owned apex banks or banks which do not have core banking facilities.
In November 2016, the government had directed more than 11,000 NGOs to file applications for renewal of registration by February 28, 2017. Of the above, 3,500 NGOs have filed applications for renewal till February 2017. Registrations of more than 7,000 NGOs were deemed expired due to non-filing of renewal applications.