Govt issues new directive, with a deadline, for NGOs getting foreign funds

 

New Delhi, Dec 26: The Union government has issued a new directive for all NGOs, business entities and individuals who receive funds from abroad. According to the new directive, they are required to open accounts in any of the 32 designated banks.
A deadline of one month has been given to the NGOs, business entities and individuals to comply with the order.
A notice in this regard has been issued by the Ministry of Home Affairs.
“All persons who are either registered or who have sought prior permission under the FCRA, 2010 shall open their bank accounts as mandated in section 17 of the FCRA, 2010 in one or more of the banks in the enclosed list,” says the notification released by the Home Ministry.
It further says, “This exercise shall be completed expeditiously within one month of the publication of this notice with intimation of the details of the bank accounts so opened in the prescribed format.”
The government has also decided that “all banks where the FCRA registered persons/organisations have opened their FC accounts would be integrated with Public Financial Management System (PFMS) for providing a higher level of transparency and hassle free reporting compliance”.