Changes to FCRA enables government to receive account details of NGOs instantly

NEW DELHI: Recent changes to the Foreign Contribution Regulation Rules (FCRA) empower the government to get details instantly about the accounts of non-governmental organisations whenever they receive foreign contributions or utilise the money. According to the home ministry: “All FCRA designated bank accounts and utilisation accounts will have to be brought on the online platforms of Public Finance Management Services ( PFMS) of the Ministry of Finance.”

This means the bank accounts of any NGO registered under FCRA can be easily inspected by authorities under the home ministry. This will not only allow them track the funds disbursed, but also maintain a vigil, said officials.

As per the new amendments, the guidelines for reporting by banks have been tightened. “The banks shall report to the central government within 48 hours any transaction in respect of receipt of any foreign contribution,” a home ministry notification said.

NGOs will be required to publish details of foreign contributions received on a quarterly basis on their websites or a website as specified by the government. This should be done within 15 days of the end of the quarter, and the reports should clearly show details of the donors, amount received and the date of receipt. According to government officials, the simplified online services will not only help reduce corruption but also allow maintaining a database of genuine NGOs.

The new rules make it easier for NGOs to file applications for registration, prior permission and renewal of registration under FCRA online and pay fees through a payment gateway.

ET VIEW

Keep track without harassment

Tracking foreign funding closely is okay. It makes sense to publicise the sources of funding of NGOs, and if there is any proof of them breaking the law of the land, the government has the right to take action against them. For long, NGO recipients of overseas funding have been on the government’s radar. Any NGO that wishes to obtain foreign funding has to be registered under the Act and only those that meet fairly stringent conditions are given permission. When checks and safeguards are in place, the government should also be fair to them.