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FCRA amendments crippling our work, say NGOs -Vijaita Singh

-The Hindu

Making it compulsory to open a bank account in Delhi among others acts an impediment, they say

The amendments to the Foreign Contribution Regulation Act (FCRA) enacted last year that among others made it compulsory for NGOs to open a bank account in Delhi has crippled the work of many organisations who are unable to receive foreign funds.

Registered NGOs can receive foreign contribution for five purposes — social, educational, religious, economic and cultural. An FCRA registration is mandatory for NGOs to receive foreign funds. There are 22,591 FCRA registered NGOs.

An NGO has now moved the Delhi High Court seeking exemption from the Union Home Ministry’s March 31 deadline to open an FCRA account with the SBI branch at Parliament Street here.

The petitioner argued that it applied to open the account before the March 31 deadline but the administrative delays on the part of the bank and the Ministry severely restricted its activities including providing COVID-19 related relief and paying of urgent salaries of staff and also affected its charitable and educational activities.

The court in a hearing on May 7 issued notice to the Ministry.

Abishek Jebaraj, the NGO’s lawyer, said there were many NGOs who were affected by this order and the new regulations were hampering charitable work during the ongoing pandemic.

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