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Govt. tightens oversight on funds received by NGOs
Why is it in news?
- The Union Home Ministry has laid down a charter for banks regarding foreign donations to non-governmental organisations (NGOs).
Details:
- The charter says that “donations received in Indian rupees” by NGOs and associations from “any foreign source even if that source is located in India at the time of such donation” should be treated as “foreign contribution”.
- As per the existing rules, all banks have to report to the Central government within 48 hours the “receipt or utilisation of any foreign contribution” by any NGO.
- Last year, the Foreign Contribution (Regulation) Act, 2010, was amended by Parliament to make it mandatory for all NGOs to receive foreign funds in a designated bank account at the State Bank of India’s (SBI) New Delhi branch.
- FCRA regulates foreign donations and ensures that such contributions do not adversely affect the internal security of the country.