Govt directs NGOs to open account in designated banks

Union Home Ministry has directed all NGOs, business entities and individuals who receive funds from abroad to open accounts in any of the 32 designated banks, within a month for higher level of transparency.

According to the ministry order, the directive to the NGOs, companies and individuals to open foreign contribution accounts in banks, which are integrated with the central government’s Public Financial Management System (PFMS), came for providing a higher level of transparency and hassle-free reporting compliance.

The order, issued on December 21, said the NGOs are directed to comply with the order within one month. The government also told them not to do anything detrimental to national interests.

The central government has already decided that all banks where the FCRA registered persons and organisations have opened their foreign contribution accounts will be integrated with the PFMS for providing a higher level of transparency and hassle-free reporting compliance.

FCRA Department has been trying to get all banks with FCRA accounts to become PFMS-compliant. PFMS stands for Public Financial Management System. This allows the FCRA Department to directly monitor transactions in FCRA bank accounts (see tweet by @fcra2010 on 15-Dec-15).

However, many banks have not migrated to PFMS as planned. Therefore, FCRA Department has decided to play hardball.

It has now published a list of 32 banks which are PFMS-compliant:
1. Abu Dhabi Commercial Bank
2. Allahabad Bank,
3. Allahabad UP Gramin Bank
4. Andhra Bank
5. Axis Bank
6. Bank of Baroda
7. Bank of Maharashtra
8. Bombay Mercantile Co-operative Bank Ltd.
9. Canara Bank
10. Catholic Syrian Bank Ltd.
11. Central Bank of India
12. City Union Bank
13. Corporation Bank
14. Cosmos Co-Operative Bank
15. DCB Bank Ltd.
16. Dena Bank
17. HDFC Bank
18. ICICI Bank
19. IDBI Bank
20. IndusInd bank linited
21. Jammu and Kashmir Bank Ltd.
22. Karur Vysya bank
23. Manipur state Co-op Bank
24. Oriental Bank of commerce
25. Punjab National Bank
26. South Indian Bank
27. State Bank of india
28. Syndicate Bank
29. Tamilnad Mercantile Bank Ltd.
30. UCO Bank
31. Vijaya Bank
32. Yes Bank

All FCRA-holders / prior-permission holders must now keep their FCRA bank accounts with one of these. They have been given time till 21-Jan-18 to migrate to these. They should then file form FC-6 with details of the new bank account.

By Naresh Sagar

Mentor MSME, Motivator, Media Event Org, Management fiscal & Water management.Social Media branding,Internet broadcasters,Propunder of Indian Philosophy

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