JOIN USMHA extends deadline for NGOs to open account in SBI Delhi to June 30
Amid demands from the NGOs, the Ministry of Home Affairs (MHA) has extended the deadline for such organisations seeking foreign funds to open an account with the State Bank of India's Main Branch in Delhi till June 30 citing "exigencies" arising out of Covid-19 and to ensure smooth transition to the new regime under amended law.
The new order also warned the NGOs that they would not be able to collect foreign donations from July 1 if they do not complete the formalities by then.
The move came amid NGOs complaining that the new amendments to the Foreign Contribution Regulation Act (FCRA) passed last year are creating trouble for them in its functioning and it has been acting as an impediment in collecting foreign funds to fight Covid-19.
Last September, Parliament had passed amendments to the FCRA, which stipulated NGOs to open a link account in SBI branch in Delhi, prohibit any NGO to transfer foreign funds to any other person and provide Aadhaar numbers of its Trustees and office bearers. Due to the pandemic, many of the NGOs are unable to complete the formalities and are not able to get foreign funds that could be used for Covid-19 related work and they have been asking the government to keep the amendments in abeyance for some time.
"Keeping in view the exigencies arising out of Covid-19 situation and to ensure smooth transition to the amended FCRA regime, the Central Government...the existing FCRA account holders have now to open the FCRA account in the New Delhi Main Branch....up to 30 June 2021," it said.
"After that date they shall not be eligible to receive foreign contribution in any account other than the FCRA Account opened in the New Delhi Main Branch (of the SBI)," the order said.
After a section of NGOs approached it, the Delhi High Court had recently asked the MHA whether it could extend the deadline, which was earlier set at March 31.
The MHA also extended the validity of the licence given to NGOs and other organisations to collect foreign funds that have expired since September last year to 30 September this year. This was to expire on May 31.
On May 13, DH reported that an RTI showed that the Centre denied information, including Cabinet Notes and file noting, on the new amendments to the Foreign Contributions Regulation Act, 2010 citing "national interest".