New Delhi, December 25 -The 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, including one foreign, within a month for higher level of transparency.It also asked them to ensure that such funds are not utilised for activities detrimental to the national interest.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, according to the ministry order, accessed by the PTI.
The Foreign Contribution (Regulation) Act 2010 provides for the regulation of acceptance of the foreign funds or foreign hospitality by certain individuals, associations, organisations and companies “to ensure that such contributions or hospitality is not being utilised for the activities detrimental to the national interest”, it said.