9 foreign NGOs stopped from direct India funding

September 15, 2021 23:29

At least nine foreign NGOs, which have been providing funds for work in different sectors in India, have been restrained by the government from transferring funds to the country without permission from appropriate authorities, officials said.

The NGOs were put on the 'Prior Reference Category' by the Ministry of Home Affairs under the provisions of the Foreign Contribution Regulation Act 2010, making it mandatory for the banks to inform authorities if any funds come from these foreign entities.

Among these foreign NGOs three are from the United States, two are Australian and four are from the United Kingdom, officials said.

The NGOs provide funds mostly for works related to environmental issues, they said.

According to law, if an NGO is put on the prior reference category, banks are bound to inform the foreigners' division of the home ministry if any funds come from them.

According to home ministry data, over Rs 49,000 crore in foreign funding was received by more than 18,000 NGOs in the country between 2018-20.

As per the Foreign Contribution Regulation Act, every FCRA-registered NGO has to now compulsorily open an 'FCRA account' in SBI, Main Branch, New Delhi for initial remittance/receipt of foreign contribution (FC) from a foreign source.

Till July 31, 2021, a total of 18,377 designated FCRA accounts have been opened with SBI, New Delhi Main Branch.

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