NGOs getting foreign aid have got a breather as the union home ministry has extended the deadline for the opening of dedicated accounts and validation of registration certificates, because of the COVID-19 situation. There had been growing concern among foreign aided NGOs complaining of shortages of funds owing to the changed FCRA regime especially during the pandemic period.
The existing account holders under the Foreign Contribution Regulation Act can now open the ''FCRA Account'' in the New Delhi main branch of the State Bank of India until June 30. After the deadline, which has been extended once again, the NGOs will not be eligible to accept any foreign aid in any account other than the FCRA account.
The MHA (Ministry of Health Administration) has re-emphasised that the NGOs who have already received registration certificates or prior permission by the central government shall not receive any foreign aid in any account other than the designated account from the date of opening of the said account or from July 1-- whichever is earlier.
Meanwhile, the government has also given relaxation for the validity of the registration certificates issued under the FCRA expiring during the period between September 29, 2020, and September 30 this year. Keeping in mind the pandemic and exigencies arising out of it that can impact the smooth transition of these NGOs to the amended FCRA regime, the home ministry on Wednesday said that such registration certificates expiring during the period beginning September 29, 2020, shall remain valid until September 30 this year.Â
Many of the NGOs have been reaching out to the home ministry in the last year saying their work is being adversely impacted. Some of these NGOs, which have been receiving foreign aid for many years, have been working in the social sector and claim to be requiring funds for either research or working for the marginalised sections of society.
The fresh extension of deadlines will be a reprieve to the voluntary sector, said an official. ''We are aware of the limitations during the pandemic period and we have given the flexibility to them.''
Meanwhile, government officials said the aim is to prevent misuse of funds as several cases came to light in the last few years where foreign funds coming into the country in the garb of development were being used to fuel anti-government protests or whip up religious sentiments. Amnesty International's bank accounts were frozen for violations of the FCRA provisions in September last creating a huge controversy. The provision to create dedicated FCRA Accounts will enable stricter monitoring and every foreign transaction will be digitally monitored. It will also ensure the NGOs comply with the timely filing of returns, said a government official.
