NEW DELHI: The government on Wednesday asked over 2,000 NGOs to validate their accounts designated to receive foreign funds and inform the Union home ministry after several organisations failed to do so. Failure to validate the accounts within the stipulated time could invite action, sources in MHA said.
According to a circular issued on Wednesday, the NGOs have been asked to validate the accounts within 15 days. The circular said all NGOs registered under the Foreign Contribution Regulation Act (FCRA) should receive donations from abroad in a single designated bank account.
However, 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, it 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," joint secretary (foreigners) in the home ministry Mukesh Mittal said. The MHA attached a list of 2,025 NGOs which have not yet validated their FCRA designated accounts.
In last three years, the NDA government has tightened the rules for NGOs. It has already cancelled registration of more than 10,000 organisations for allegedly non-filing of annual returns as mandated in the FCRA. The renewal of licence more than 1,300 NGOs has also been denied or scrapped in the recent past.
Source: http://timesofindia.indiatimes.com/india/validate-foreign-fund-a/cs-or-face-action-govt-tells-ngos/articleshow/59044942.cms
According to a circular issued on Wednesday, the NGOs have been asked to validate the accounts within 15 days. The circular said all NGOs registered under the Foreign Contribution Regulation Act (FCRA) should receive donations from abroad in a single designated bank account.
However, 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, it 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," joint secretary (foreigners) in the home ministry Mukesh Mittal said. The MHA attached a list of 2,025 NGOs which have not yet validated their FCRA designated accounts.
In last three years, the NDA government has tightened the rules for NGOs. It has already cancelled registration of more than 10,000 organisations for allegedly non-filing of annual returns as mandated in the FCRA. The renewal of licence more than 1,300 NGOs has also been denied or scrapped in the recent past.
Source: http://timesofindia.indiatimes.com/india/validate-foreign-fund-a/cs-or-face-action-govt-tells-ngos/articleshow/59044942.cms
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