NGO - Receipt of Foreign Donations

[satbir singhwahi]

NGO HAS GOT PERMISSION FROM MHA TO RECEIVE FOREIGN DONATIONS, AND HAS OPENED A/C WITH ICICI BANK TO RECEIVE FOREIGN DONATIONS. BUT NOW BANKS IN U.K. AND CANADA ARE NOT RECEIVING FUNDS AND SAYING NO FUNDS CAN BE TRANSFERED TO NGO IN INDIA.ONLY FUNDS TO INDIVIDUAL A/C CAN BE TRANSFERRED. IS THIS VERSION OF FOREIGN BANKS CORRECT.

[CAGOPALJI AGRAWAL]

The reason from the denying bankers must be seeked.

[Surender Gupta]

You must know first that why foreign banks are denying the remittance to India. Is there any restriction under the respective laws of those countries

[Guest]

There is no such restriction wrt transfer of funds to NGO under FCRA. Many of my clients are still receiving foreign grants. There is no issue wrt individual vs NGO.

Still exact reason should be obtained from foreign donor.

AI Summary

NGO Faces Fund Transfer Hurdles as UK, Canada Banks Refuse Donations; No FCRA Restrictions Found, Clarification Needed. An NGO received permission from the Ministry of Home Affairs to accept foreign donations and opened an account with ICICI Bank for this purpose. However, banks in the UK and Canada are refusing to transfer funds to the NGO's account in India, stating that only individual accounts can receive funds. Respondents suggest investigating the reasons behind the foreign banks' refusal, noting that there are no restrictions under the Foreign Contribution Regulation Act (FCRA) for NGOs to receive foreign donations. It is advised to obtain clarification from the foreign banks or donors regarding the issue.