This Article is From Jun 18, 2015

Inform Us of Foreign Funds to NGOs in 48 Hours, Government Proposes to Banks

Inform Us of Foreign Funds to NGOs in 48 Hours, Government Proposes to Banks

File photo of Union Home Minister, Rajnath Singh

New Delhi: It could take all but 48 hours for the government to know about any NGO receiving foreign funds, and it will be mandatory for NGO's to put out such details on their website within a week.

These are some of the changes proposed by union home ministry to keep a strict watch on NGOs under the Foreign Contribution (Regulation) Rules.

The home ministry has issued a notification with the proposed draft amendment rules and has sought suggestions from public and stake-holders by July 1.

As of now, NGOs are required to put out details of foreign funding only if they are over Rs one crore, that too at the end of the financial year. Banks have to inform the government only if foreign contribution to any NGO is over Rs one crore, over a period of 30 days.

The Centre's move comes after it cancelled the license of 9,000 NGOs for alleged violation of Foreign Contribution Regulation Act (FCRA) in April. Earlier this month, it also cancelled the license of 4,470 entities including Supreme Court Bar Association, Jawaharlal Nehru University (JNU) and Delhi University, which bars them from receiving foreign funds.

Another suggestion by the ministry is a new declaration that NGOs have to make, that foreign aid received will not be used for any activity that is, "detrimental to national interest, likely to affect public interest, or likely to prejudicially affect the security, scientific, strategic or economic interest of the state."

NGOs will have to also submit details of any social media account on Facebook or Twitter being operated by them as well.

Central government has been cracking down on NGOs receiving foreign funding, engaging in irregularities including non-filing of annual returns. The associations were given a notice asking for reply, official sources had said.
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