Home Ministry mulls crackdown on non-compliant NGOs

RSTV Bureau
File Photo: Union Home Minister Rajnath Singh.

File Photo: Union Home Minister Rajnath Singh.

The Union home ministry has warned more than 1900 NGOs of penal action for failing to validate their foreign contribution designated bank accounts.

According to the rules, all eligible non-government organisations (NGOs) should receive donations from abroad in a single designated bank account. Voluntary organisations have to be registered under the Foreign Contribution (Regulation) Act or FCRA to receive financial aid from abroad.

On June 7, the ministry asked 2025 NGOs to validate their accounts within the fortnight.

“It is, however, seen that a large number of associations have still not validated their foreign contribution designated bank accounts,” the home ministry said this week in its notice to defaulting NGOs.

“Please note that non-compliance may lead to penal action as per the FCRA rules,” warns the Home ministry note.

A total of 1927 NGOs have not yet verified their bank accounts, said the ministry.

In another order, all NGOs receiving foreign grants have been asked to give audited statements of their accounts, including income and expenditure statements with the government. Such NGOs are also mandated to give the details for every financial year beginning April 1 within nine months of closure of the financial year.

Over 20,000 voluntary organisations are registered with the government for getting foreign aid.

The home ministry is also mulling the future course of action against more than 10,000 NGOs who have failed to give annual statements of their accounts.

(With inputs from PTI)