SBI seeks clarity on handling of bank accounts, deposits under FCRA bill
State Bank of India officials are seeking clarity on handling accounts when an organization’s registration is suspended. They highlighted risks for smaller entities that may lose access to funds upon missing renewal deadlines. The JPC is examining the implications of the FCRA Amendment Bill, focusing on accountability and regulations for banking procedures.
The State Bank of India (SBI) has requested clarification on the management of bank accounts and deposits when a non-profit's registration is revoked under the recent Foreign Contributions (Regulation) Act (FCRA) legislation, while the Law Ministry argues that the bill enhances accountability. SBI Chairman Challa Sreenivasulu Setty and Legislative Secretary Rajiv Mani, who also oversees the Law Secretary role, presented a briefing to the Joint Parliamentary Committee (JPC) reviewing the FCRA Amendment Bill, 2026.
According to SBI's presentation, the New Delhi Main Branch holds 25,432 FCRA accounts, with 14,440 (57%) currently active and 10,992 (43%) placed under restriction. The bank had received 88,409 remittances totaling Rs 23,912 crore last year and 33,397 remittances worth Rs 9,263.12 crore up to August 31 of the present year. SBI highlighted the risk that smaller and rural organizations may lose access to funds if they miss renewal deadlines.
Additionally, SBI raised concerns about a potential discrepancy between an organization's registration expiring and the bank receiving validated communication, which could lead to uncertainty regarding the protection of transactions carried out during this period.
The bank sought clarification regarding several critical matters, including whether accounts should be frozen or continue operating under restrictions once control is transferred to the designated authority. SBI also inquired about the handling of fresh deposits, the treatment of existing balances, fixed deposits, and accrued interest. The bank emphasized that while the bill outlines government control over foreign contributions and assets, the specific banking procedures would be detailed through subsequent rules.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
