FCRA – GAME OVER ?
The Foreign Contribution (Regulation) Amendment Bill, 2020, introduced in Lok Sabha by Home Minister Amit Shah today at 3 pm, says the need to strengthen the Act has arisen due to several organisation “misutilising or misappropriating” the funds leading to the government cancelling 19,000 such registrations in the past few years.
1) Mandatory to open FC Bank in SBI-Delhi Branch
Amendment of section 17 of the ACT has sought to provide that every person who has been granted certificate or prior permission under section 12 shall receive foreign contribution only in an account designated as ‘‘FCRA Account’’ which shall be opened by him in such branch of the State Bank of India at New Delhi, as the Central Government may, by notification, specify. It has, however, allowed the organisation to transfer these funds to another account for utilisation.
2) Slashing Administrative Expenses further
It is proposed to slash administrative expenses further from 50% to 20%. This will be the harsh step for NGOs. Already the definition of Administrative Expenses is very vague and no clarity over which expenses should be include or not.
3) AADHAR CARD for Board / Office Bearer
It is proposed now that AADHAR is mandatory for all the office bearer and board members. Earlier FCRA has already introduced to submit an affidavit by each board members. That affidavits is almost like a had-cuffs. One more step by making AADHAR mandatory to demotivate person to be on the board of the NGO.
4) No more Transfer of FC Funds to other NGO
Now, no more transfer of FC funds to any other organisation. Means, no Networking no sub-grant. However, more clarity is required on this.
5) And some more restrictions
Also, a “Summary Inquiry” is proposed by government, wherein FCRA department can freeze your funds even in the middle of the Project.
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The Conclusion
The important question here is – Is this beginning of the end?
Thank you very much for letting us know, you had clearly explained.
Namaste Sir,
Humari NGO ka FCRA Bank Account Axis Bank me chal raha hai to kya yeh FCRA Bank account SBI Branch New Delhi me open karana hoga ya phir organisation head ka Bank Account SBI New Delhi Branch me open karana hoga.
Krapaya jaankari dene ka kasht karen.
OPENING ACCOUNT FOP FC IN SBI IN DELHI IS MOST DIFFICULT AND ALARMING.
THEY MAY RESTRICT TO OPEN FC ACCOUNT ONLY IN SBI SITUATED IN THEIR LOCALITY WHICH IS DESIGNATED BY SBI.
MORE CLARITY IS REQUIRED.
OTHER ISSUES, LIKE ADMIN COST, NO TO TRANSFER, MAY BE ACCEPTABLE.
LOOKING FORWARD TO HEAR FROM OTHERS.
ANY SPECIFIC REASON OR JUSTIFICATION OR OTHER REASON FOR OPENING ACCOUNT FOR FC IN SBI, NEW DELHI. IN THE DIGITAL ENVIRONMENT, ANY BRANCH OF SBI CAN GET CONNECTED FOR MONITORING AND EVALUATION. PLEASE SPECIFY THE SPECIFIC REASON IF ANY? .
IN VIEW OF PRESENT DIGITAL ENVIRONMENT AND ITS ACCESS & ADVANTAGES, OPENING AN ACCOUNT ANY BRANCH OF INDIA SHOULD BE ACCEPTED AS THE PURPOSE OF MONITORING CAN BE MADE MORE EFFECTIVE AND EFFICIENT. IT FURTHER REDUCES THE BURDEN OF NGOs TO OPEN FCRA ACCOUNT AT DELHI ONLY. IN VIEW OF THAT, THE CLAUSE OF OPENING FCRA ACCOUNT A SBI AT DELHI CAN BE REMOVED FOR THE CONVENIENCE OF ALL WITH BETTER MONITORING AND EVALUATION FROM TIME TO TIME.
SYSTEMS HAVE ALREADY PROVED THAT DECENTRALIZATION IS MORE EFFECTIVE AND EFFICIENT. YES, THEY HAVE BETTER MECHANISM OF MONITORING AND EVALUATING FROM TIME TO TIME TO CHECK THE FLOW OF FCRA FUNDS.
Can fc money transferred from one FC utilisation account to other FC utilisation account.