NGOs should open accounts in designated banks within a month: Home Ministry

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In a move to bring more transparency and accountability in the use of public funds, the government directed all the NGOs (non-governmental organizations), companies and individuals who receive foreign funds to open accounts in the 32 designated banks, which are integrated with the government’s Public Financial Management System (PFMS).

NGO-bank-account
NGOs should open accounts in designated banks within a month

The directive is expected to bring a higher level of transparency and an efficient reporting compliance.

The Home Ministry further instructed the NGOs and other entities to make sure all the received funds are used in a rightful manner and not for the activities against the national interest.

The Foreign Contribution Regulation Act (FCRA) 2010 enables acceptance of foreign funds or foreign hospitality by certain individuals, organisations and companies provided all such contributions are not being used for the activities detrimental to the national interest.

In order to exercise the powers provided by FCRA, the central government directed all the registered individuals and organisations to open bank accounts in any one of the 32 designated banks including one foreign bank.

The list of 32 designated banks is as follows:

Abu Dhabi Commercial Bank

  1. Abu Dhabi Commercial Bank
  2. Allahabad Bank
  3. Allahabad UP Gramin Bank
  4. Andhra Bank
  5. Axis Bank
  6. Bank of Baroda
  7. Bank of Maharashtra
  8. Bombay Mercantile Co-operative Bank Ltd
  9. Canara Bank
  10. Catholic Syrian Bank
  11. Central Bank of India
  12. City Union Bank
  13. Corporation Bank
  14. Cosmos Co-Operative Bank
  15. DCB Bank Ltd
  16. Dena Bank
  17. HDFC Bank
  18. ICICI Bank
  19. IDBI Bank
  20. IndusInd Bank
  21. Jammu and Kashmir Bank
  22. Karur Vysya Bank
  23. Manipur State Co-op Bank
  24. Oriental Bank Of Commerce
  25. Punjab National Bank
  26. South Indian Bank
  27. State Bank of India
  28. Syndicate Bank
  29. Tamilnad Mercantile Bank
  30. UCO Bank
  31. Vijaya Bank and
  32. Yes Bank

The government further directed the organisations to complete the exercise within a month. All the NGOs, companies and individuals who are registered under the FCRA Act 2010 should hence open accounts in any of the 32 banks by 21 January 2018 and update the details of their accounts to the ministry in the said format.

Further, all the banks which hold the foreign contribution accounts of FCRA registered persons and organisations would be integrated with the PFMS. While most of the banks have integrated their systems with PFMS, there are some others which did not complete the integration despite repeated notices, the Ministry added.

The PFMS provides a financial management platform for all plan schemes and a database of all recipient agencies. It also provides integration with core banking solutions and with state treasuries hence provides efficient and effective tracking of fund flow to the lowest level of implementation for all government scheme.

Read more here.

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