India’s biggest bank's FCRA puzzle needs answers
New Delhi: The State Bank of India (SBI) has requested clarification on the management of bank accounts and deposits when an organization's registration is suspended under the updated FCRA bill. The Law Ministry maintains that the legislation enhances accountability. SBI Chairman Challa Sreenivasulu Setty, alongside officials and Legislative Secretary Rajiv Mani (who serves as Law Secretary), provided an overview to the Joint Parliamentary Committee (JPC) evaluating the FCRA Amendment Bill, 2026.
According to SBI's presentation, their New Delhi Main Branch manages 25,432 FCRA accounts, of which 14,440 (57%) are active and 10,992 (43%) are restricted, with 24,915 designated accounts. The bank processed 88,409 remittances valued at Rs 23,912 crore last year and 33,397 worth Rs 9,263.12 crore up to August 31 of this year.
SBI highlighted the risk for smaller and rural organizations that could lose access to funds if they miss renewal deadlines. The bank also raised concerns about a potential mismatch between an organization's registration lapse and the bank's receipt of authenticated communication, seeking protection for transactions conducted during this period.
SBI sought clarity on the bank's approach when accounts transition to the designated authority's control – whether they should be frozen or remain operational, who would manage them, and how new deposits, fixed deposits, and interest would be handled. The bank also noted that while the bill aims to control foreign contributions and assets, specific banking procedures would be determined through regulations.
Legislative Secretary Rajiv Mani explained the rationale behind provisions governing foreign-funded assets.
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