The Ministry of Home Affairs on Friday launched a web-based analytical tool to monitor the flow and utilisation of foreign contributions received by non-governmental organisations. The tool will be linked to bank accounts of organisations registered under the Foreign Contribution (Regulation) Act, and will show real-time transaction data, the Centre said.
The tool would enable government departments to “scrutinise source of foreign funds and their actual use in India”, the statement said.
“Each FCRA-NGO conducts multiple financial transactions in receiving and spending the foreign contribution,” the ministry said. “Therefore, there are hundreds of thousands of such transactions annually which can be monitored effectively through this tool. It will, therefore, help the stakeholders in government to better regulate acceptance and utilisation of foreign contributions.”
Almost 25,000 organisations are registered under the foreign donations law.
In recent years, the Ministry of Home Affairs has cracked down on thousands of NGOs that receive funds from abroad, cancelling their licences for violating the Foreign Contribution (Regulation) Act. NGOs and activists have accused the government of suppressing dissenting voices.
The foreign funding received by non-profits in India fell by Rs 11,274 crore in 2016-’17 – from Rs 17,773 crore in 2015-’16 to Rs 6,499 crore, the government told the Rajya Sabha in December.