‘Online Analytical Tool’ to keep eye on flow of foreign funds!
There
are news reports that Ministry of Home Affairs (MHA) has launched an ‘Online
Analytical Tool’ “to keep a close eye on foreign funded NGOs”.
are news reports that Ministry of Home Affairs (MHA) has launched an ‘Online
Analytical Tool’ “to keep a close eye on foreign funded NGOs”.
This is nothing
new nor something that some of us in the voluntary sector were not already
aware of!
new nor something that some of us in the voluntary sector were not already
aware of!
On 21st December 2017, Ministry of Home Affairs had issued a notice that organisations having prior permission or registered under the Foreign Contribution Regulation Act (FCRA) 2010 should maintain their FCRA Bank account only with banks integrated with the Public Financial Management System (PFMS). At that time 32 Banks were in the list of PFMS integrated Banks. Currently the list has grown to 55.
The
Public Financial Management System, earlier known as Central Plan Schemes
Monitoring System (CPSMS), is a web-based online software application developed
and implemented by the Office of Controller General of Accounts (CGA).
Public Financial Management System, earlier known as Central Plan Schemes
Monitoring System (CPSMS), is a web-based online software application developed
and implemented by the Office of Controller General of Accounts (CGA).
According
to media reports MHA launched the “Online Analytical Tool” on Friday, 1st
June 2018 “to analyse in real time the source, destination and the actual usage
of the fund.”
to media reports MHA launched the “Online Analytical Tool” on Friday, 1st
June 2018 “to analyse in real time the source, destination and the actual usage
of the fund.”
Reportedly,
the online analytical tool will also give government “the capacity to take
data-driven and evidence-based decisions regarding the compliance of the
provisions of the Foreign Contribution (Regulation) Act, 2010.” It has
analytical features to conduct big data mining and data exploration. Its
dashboard will be integrated with the bank accounts of the FCRA-registered
entities through the Public Financial Management System for updating of
transactional data on a real-time basis.
the online analytical tool will also give government “the capacity to take
data-driven and evidence-based decisions regarding the compliance of the
provisions of the Foreign Contribution (Regulation) Act, 2010.” It has
analytical features to conduct big data mining and data exploration. Its
dashboard will be integrated with the bank accounts of the FCRA-registered
entities through the Public Financial Management System for updating of
transactional data on a real-time basis.
MHA’s
obsession with NGOs
obsession with NGOs
MHA’s obsession with
NGOs and FCRA has always fascinated us.
NGOs and FCRA has always fascinated us.
Significantly more foreign funds flow
into India through Foreign Direct Investment (FDI) and through Foreign Institutional
Investors (FIIs). However, these are regulated under a much softer and
user-friendly Foreign Exchange Management Act (FEMA).
into India through Foreign Direct Investment (FDI) and through Foreign Institutional
Investors (FIIs). However, these are regulated under a much softer and
user-friendly Foreign Exchange Management Act (FEMA).
Foreign Direct
Investment in India has averaged US $ 1,294.03 Million from 1995 until 2018,
reaching an all-time high of US $ 8,579 Million in August of 2017. India has also
received net investments of US $ 19.79 million from Foreign
Institutional Investors (FIIs) between April to December 2017.
Investment in India has averaged US $ 1,294.03 Million from 1995 until 2018,
reaching an all-time high of US $ 8,579 Million in August of 2017. India has also
received net investments of US $ 19.79 million from Foreign
Institutional Investors (FIIs) between April to December 2017.
In contrast, there are
only approximately 25,000 active organisations registered under the FCRA receiving
foreign contributions worth Rs. 18,065 crores from foreign donors for various
social, cultural, economic, educational and religious activities.
only approximately 25,000 active organisations registered under the FCRA receiving
foreign contributions worth Rs. 18,065 crores from foreign donors for various
social, cultural, economic, educational and religious activities.
Does MHA and the
Government of India really believe that 25,000 NGOs with aggregate receipts of Rs.
18,065 crores from foreign donors for various social, cultural, economic,
educational and religious activities can be a “threat to National interest” or “affect prejudicially the sovereignty and integrity of India”?
Government of India really believe that 25,000 NGOs with aggregate receipts of Rs.
18,065 crores from foreign donors for various social, cultural, economic,
educational and religious activities can be a “threat to National interest” or “affect prejudicially the sovereignty and integrity of India”?
In any case, remember, we, the NGOs are being watched and closely monitored,
But, then again, if you are legally compliant, you have little to worry. Let, them watch us. Let them monitor us. And, let us prove to MHA that far from being a threat or of nuisance value, NGOs play a critical part in developing society, improving communities and promoting citizen participation within the sovereign democratic republic of India.