The Home Ministry has directed all NGO’s, 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.

The banks will be in yoke with the Central Government’s Public Financial Management System (PFMS). It states that the ‘Foreign Contribution (Regulation) Act (FCRA) 2010’ provides for the provision of foreign aid or fund to a person, association and company, to ensure that such help or contribution is used for any such work Do not be in the country against the interest. ‘

The Central Government had already decided that all the banks, where FCRA registered people and institutions have opened their own funding contracts, will join PFMS, which will make the whole system transparent. Some banks have already added their systems to PFMS.

These banks includes ICICI Bank, Bank of Baroda, State Bank of India, ADBI Bank, Central Bank of India, HDFC Bank, UCO Bank etc.

Source: Livemint