The Home Ministry has asked nearly six thousand NGOs to open their accounts in banks having core banking facilities. In a communication, the Ministry said this would allow the security agencies to access the accounts on a real time basis in case of any discrepancy. Under core banking system, all the branches of the networked banks are interconnected.
The communication came after it was detected that many NGOs have their bank accounts in cooperative banks or state government-owned apex banks or banks which do not have core banking facilities.
The Ministry wants that all NGOs registered under the Foreign Contribution Regulation Act mandatorily have their accounts in either nationalised banks or in a few private banks which have core banking facilities.