CHENNAI: The Union Home Ministry has suspended the registration of five non-governmental organisations from Tamil Nadu under the Foreign Contributions Regulation Act (FCRA), 2010 for their failure to open bank accounts in one or more of the banks linked to the Public Financial Management System (PFMS).
The organisations include Thanjavur based All women's Welfare and Rural Development Society, Dindigul based Society For Litigation Awareness And Aid For The Public (slaap), Villupuram district-based Village Development Society, Rural Education And Economic Development Trust located in Arantangi in Pudukottai district and centre for Rural Women's development in Ramanathapuram.
These NGOs were served a show-cause notice on June 29 last year for not complying with a Central government notice of December 2017 asking FCRA-registered NGOs to open accounts, as mandated in Section 17 of FCRA, in one or more banks integrated with PFMS.
Since they had failed to file a response within the prescribed 15-day time limit, action has been taken under the power conferred by Section 13 of FCRA, 2010. "The registration is supended for the organisations including their branches and units, for a period of 180 days,” the Home Ministry stated.
The Home Ministry wanted to integrate FCRA accounts with Public Financial Management System (PFMS) as that it will enable the Ministry to monitor the receipt and utilisation of foreign contribution credited in such bank accounts.
It is learnt that a total of 156 NGOs across India did not open their bank account in PFMS-integrated banks.