Govt asks NGOs and companies to open bank account for transparency

New Delhi, Dec 25: After several steps like Demonitisation, GST and Aadhaar linking with Bank accounts, Mobile , PAN etc now the government has shifted focus on NGOs and companies receiving funds from abroad.

Home ministry has asked all NGOs, business entities and individuals to open accounts in any of the 32 designated banks, including one foreign, within a month for higher level of transparency.

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.

Therefore, in exercise of the powers conferred under the FCRA, 2010, the central government hereby directs all persons who are either registered or who have sought prior permission under the FCRA 2010 to open their bank accounts as mandated in one or more banks in the list of the 32 banks, the order said.