Govt to Monitor Cash Inflow to NGOs from Foreign Contributions

The Union Home Ministry will be adopting a web-based payment method, to keep track of foreign funds.

The Centre will soon be able to keep track of foreign contributions made to NGOs. Image used for representation. (Photo: Reuters)

The Centre will soon be able to track in real-time any foreign contributions made to Non Governmental Organisations (NGO) registered under the Foreigners Contribution Registration Act (FCRA) 2010, reported The Times of India.

The FCRA division of the Union Home Ministry will be adopting a web-based application for payment – Public Financial Management System (PFMS). The application will also be used for “accounting and reconciliation of government transactions.” It will allow the government to know “the frequency, number and quantum” of transactions made to NGOs which hold an FCRA license, the report said.

A government official said in the report that there was no way at the moment to track foreign contributions, unless the NGO files a return, which is technically required by the FCRA.

Many NGOs are able to bypass the law, and do not file the return. After receiving foreign funds, but with their licenses cancelled for not filing a return, the office-bearers of many NGOs “float a new NGO”, said the report.

In 2015, the Modi government has cancelled licenses of almost 10,000 NGOs for failing to file returns for the last three years, the report said.