Govt Restricts Funding Of 10 Foreign NGOs Working For Child Rights, Environmental Causes

The central government has curbed the funding of ten international non-profit organisations working towards child rights, climate change, slavery and environmental projects. These include three US-based NGOs, two from Australia, three foundations from the United Kingdom, the European Climate Foundation, and one in the United Arab Emirates, The Hindu reported.

According to the media report, a note by the Reserve Bank of India dated July 1, 2021, was sent to all banks with a specified list of foreign entities to be placed on the Prior Reference Category List (PRC list).

According to this, any foreign donor who wishes to transfer funds to an Indian recipient/ association must get clearance from the Ministry of Home Affairs.

Besides, if any misappropriation of funds is identified, the associated banks and chartered accountants will be held accountable.

Reportedly, there are 80 international organisations in the reference category list.

"The RBI has instructed that any fund flow from the (specified) donor agencies to any NGO/Voluntary organisation/ persons in India should be brought to the Home Ministry so that the funds are allowed to be credited to the recipients only after prior permission," the reported quotes RBI's note.

Last year, the Centre amended the Foreign Contribution Regulation Act, which governs the utilisation of foreign donations received by NGOs in the country. The government made the identity card (Aadhaar) mandatory for office bearers of the NGOs that seek foreign donations.

According to the new amendments, political candidates, government employees, legislature members, and political parties were restricted from accepting foreign funding. The agencies must also submit commitment letters from their donors, specifying the amount of foreign funding and its purpose.

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