Centre asks NGOs to open accounts in banks having core banking facilities
 Source : News Bharati English  Date : 11-May-2017

New Delhi, May 11: In order to scrutinize the misuse of foreign funding by non government organizations (NGOs) the Union Home Ministry has asked nearly six thousand NGOs to open their accounts in banks having core banking facilities.

In a communication, the Ministry said, this would allow the security agencies to access the accounts on a real time basis in case of any discrepancy. Under core banking system, all the branches of the networked banks are interconnected.

The communication 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.

The Ministry wants that all NGOs registered under the Foreign Contribution Regulation Act mandatorily have their accounts in either nationalised banks or in a few private banks which have core banking facilities.

Earlier, Home Ministry announced that all the NGOs who receive foreign fund donations must file their account details online. If not then they will be subjected to face the penal action.

Also, The Supreme Court had direction the central government to audit the accounts of over 32 lakh NGOs functioning in the country and receiving funds from various sources, including the government funds and foreign donations.