SBI seeks clarity on handling of bank accounts, deposits under FCRA bill

New Delhi: The State Bank of India (SBI) has sought clarity on the handling of bank accounts and deposits when an organisation's registration is suspended under the new FCRA bill, while the Law Ministry asserts that it strengthens accountability.

SBI Chairman Challa Sreenivasulu Setty-led officials and Legislative Secretary Rajiv Mani, also holds the charge of Law Secretary briefed the Joint Parliamentary Committee (JPC) examining the FCRA Amendment Bill, 2026.

As per SBI's presentation, its New Delhi Main Branch has 25,432 FCRA accounts, of which 14,440 (57%) are active and 10,992 (43%) restricted, with 24,915 designated accounts. SBI received 88,409 remittances worth Rs 23,912 crore last year and 33,397 worth Rs 9,263.12 crore till August 31 this year.


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SBI flagged the risk of smaller and rural organisations losing access to funds if they miss renewal deadlines. It also pointed to a potential gap between an organisation's registration ceasing and the bank receiving authenticated communication, seeking protection for transactions processed in the interim.

The bank sought clarity on whether accounts should be frozen or operate under restrictions once control passes to the designated authority, who would operate them, whether fresh receipts could be credited and how existing balances, fixed deposits and interest would be treated. It also noted that while the Bill provides for government control of foreign contributions and assets, detailed banking procedures would be prescribed through rules.

Mani, meanwhile, explained the rationale behind provisions dealing with foreign-funded assets.