NGO Consultant

NGO Consultant
Odisha NGO Consultancy Services

Thursday, May 11, 2017

Govt tightens noose on NGOs; asks them open core accounts in public banks

Registration of more than 10,000 NGOs have been cancelled over the last three years

Tightening the rules for NGOs (Non-governmental organisation), the Home Ministry has asked as many as 5,845 organisations to open their accounts in banks having core banking facilities and furnish details for real-time access to security agencies in case of any discrepancy.

 It is the latest in a series of steps taken by the NDA government aimed at checking "errant" NGOs, especially those receiving foreign funding.

Registration of more than 10,000 NGOs have been cancelled and more than 1,300 have been denied a renewal over the last three years for various violations.

The move came after it was detected that many NGOs have their bank accounts in cooperative banks or state government- owned apex banks or banks which do not have core banking facilities, official sources said.

In March, Business Standard had reported that as many as 11,319 NGOs were barred from receiving foreign funds as their Foreign Contribution Regulation Act (FCRA) licences had expired with effect from November 1, 2016 and registration of more than 14,000 NGOs was cancelled for violating the law.

 
As of now, there are around 24,000 active NGOs in the country as against 40,000 in 2014-15.