NGOs must have accounts in banks with core banking system: MHA

Tightening the noose around delinquent non-governmental organisations (NGOs), the Centre is all set to amend the Foreign Contribution Regulation Act (FCRA) Rules, making it mandatory for all voluntary organisations to have dedicated accounts only in banks with core banking facilities for their real-time access.

The home ministry is also making rules to ensure that no NGO is allowed to get foreign funds under the prior permission category more than once.

The move comes considering the fact that the Amnesty International India got foreign funds under the prior permission category at least thrice, which has made the government jittery, official sources said.

The new FCRA Rules are expected to be notified soon.

There are around 33,000 NGOs which were registered under the FCRA. However, many of them do not have their FCRA accounts in banks with core banking facilities.

Many NGOs have their FCRA accounts in cooperative banks or state governments-owned apex banks or banks which do not have core banking facilities.

The Home Ministry now wants that all FCRA registered NGOs mandatorily have their accounts in either nationalised banks or in a few private banks which have core banking facilities.

This would allow the security agencies to access the accounts of NGOs on real time basis, the sources said.

Government will also tell all NGOs whose expenses are Rs 10 lakh or more in three preceding years have to register under the FCRA, they added.