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Govt stops foreign funding to 156 NGOs for defying order

Govt stops foreign funding to 156 NGOs for defying order

News:

The Home Ministry has suspended the foreign funding license of 156 NGOs issued under the Foreign Contributions Regulation Act, 2010

Facts:

  • All entities registered under FCRA were required to open their bank accounts, as mandated in Section 17 of the FCRA, in one or more of 32 banks that had already integrated their system with the Public Financial Management System (PFMS)
  • However, the 156 NGOs did not open their bank account in PFMS-integrated banks, which now total 59, violating provisions of the FCRA
  • Suspension of the FCRA registration means the NGOs and entities cannot accept funding from abroad.

Additional Facts:

  • About Foreign Contribution (Regulation) Act 2010
    • The FCRA 2010 provides for the regulation of acceptance of the foreign funds or foreign hospitality by certain individuals, associations, organisations and companies to ensure that such contributions or hospitality is not being utilized for the activities detrimental to the national interest
  • About Public Financial Management System
    • The PFMS functions under the Controller General of Accounts in the Ministry of Finance.
    • Provides a financial management platform for all plan schemes, a database of all recipient agencies, integration with core banking solution of banks handling plan funds, integration with state treasuries and efficient and effective tracking of fund flow to the lowest level of implementation for plan scheme of the government.
  • Benefits:
    • Resulted in effectiveness and economy in public finance management through better cash management for transparency in public expenditure
    • Improved programme administration and management and direct payment to beneficiaries and greater transparency and accountability in the use of public funds.
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