Clarification received from Ministry on “Transfer of Funds”


We would like to intimate all the members of SRRFDialogue that a clarification has been received from the FCRA Dept. that there is no need to take prior approval from the department for transferring funds to other registered NGOs considering Section 7. Copy of the clarification is attached. Some conditions have been mentioned, which are being studied and precautions which need to be taken would be shared with you.

Socio Research & Reform Foundation
(A Non Government Organisation)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
Tele/Fax: +91-11-25821088, 25817157, 25722044

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11 Responses to Clarification received from Ministry on “Transfer of Funds”

  1. Socio Research & Reform Foundation says:

    Dear Friends,

    SRRF and like-minded organizations who contributed to this effort acknowledge your kudos.

    However let us add a word of caution that the clarification received is with certain rider. The clarification states that in terms of Section 7 registered NGOs intending to transfer funds to other NGOs do not need prior approval of the central Govt, subject to recipient association/NGO has not been proceeded against under any provision of the Act.

    From the above, it is clear that the Dept. is putting onus on individual transferors to ensure that they do not transfer funds to organisations which are being proceeded against under FCRA. For this the Dept. would need to put up a list of such organisations on its web-site (along with effective dates) to ensure that the organisations refer to such a list to comply with this responsibility.

    However till such time that the Dept. undertakes this exercise, our suggestion is that the transferor should obtain an undertaking from the recipient NGOs to whom it will transfer the funds, confirming that there are no proceedings pending against them undertaken by the FCRA Dept.


    Socio Research & Reform Foundation

    (A Non Government Organisation)

    512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008

    Tele/Fax: +91-11-25821088, 25817157, 25722044


  2. Jagdeep Kakkar says:

    Dear Sardanaji,

    My sincere thanks to Mr.Subhash Mittalji and you, who really devoted lot of time in getting the information from Ministry Of Home Affairs inspite of your busy scheduled. I assure that in future also we would come forward to support to Shri Subhashji in any matter like FCRA. May God Bless both of you. I also thank you my other colleagues for providing their views on FCRA for the improvement of the development sector.

    With kind regards

    Jagdeep Kakkar

  3. Arvind Kumar says:

    Dear sir,

    This is great achievement, Thanks a lot for you and all who have contributed to make it possible.

    Arvind Kumar
    Director Finance and Admin
    Udayan Care
    16/97-A, Ist Floor
    Vikaram Vihar, Lajpat Nagar-IV
    New Delhi – 110 024

  4. Govinda Raju says:

    Dear Subhashji,

    Thank you so much for following it through and sharing the same with all of us.

    It’s a great relief for us as we transfer funds to our partners every month and the installment for this month is now due.

    Govinda Raju
    Finance Director
    ChildFund India

    22 Museum Road
    Bangalore 560001
    Karnataka, India

  5. Deepak says:

    Dear All

    This is a very great achievement.

    Congrats to all the team members.

    The payer ( transferor) NGOs’ can always take care of the condition as mentioned in the clarification dated 11-05-2011 by taking an undertaking from the recipient NGO confirming that no action has been taken / proceeded against by the FCRA department.


  6. Kavita Mehta says:

    Congratulations! Great efforts…..

    Kavita Mehta

  7. Shubhro Roy says:

    Thanks! Subhash Ji. Well noted.


    Shubhro Roy
    Programme Manager (Administration)
    National Social Watch Coalition
    New Delhi

  8. vijay sardana says:

    Dear Colleagues in Development,

    Thanks to the timely and genuine efforts of a number of colleagues from the development sector, ably led by Mr. Subhash Mittal, we have this much awaited clarification in a record time from the Ministry of Home Affairs, FCRA Department. I would like to thank you all for this and request your on going support in our continuing struggle to improve the performance of the development sector.

    With best wishes,
    Vijay Sardana

  9. L N Sharma says:

    Dear Sir,

    Great Achievement for all of us.

    Thanks and regards,
    L N Sharma
    Finance & Administration
    Consumer Unity & Trust Society (CUTS)

  10. Surat Sandhu says:

    Cheers n Regards with Thanks a ton

    Surat Sandhu

  11. T Balasubramanian says:

    Dear ALL,

    I am delighted to get the confirmed news on the changes made in the new FCRA rules. This could not have happened but for your efforts.

    Big Thanks on behalf of every one.

    Best wishes,

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