The State Bank of India (SBI) is learnt to have shown its support to the objectives of the proposed amendments to the Foreign Contribution (Regulation) Act (FCRA), while seeking clear rules on how banks should handle an organisation’s accounts and deposits when its permission to receive foreign donations ends.In a presentation to the Joint Parliamentary Committee examining the Foreign Contribution (Regulation) Amendment Bill, 2026, on Tuesday, a team of SBI officials, led by its Chairman Challa Sreenivasulu Setty, said the Bill provides for government control of foreign contributions and assets in such cases, but leaves the detailed banking procedure to be prescribed in rules, sources said.Meanwhile, Opposition members of the panel requested Chairman Sanjay Jaiswal to postpone the committee meeting scheduled for October 12 to allow more comprehensive scrutiny of the legislation. They also called for an extension of the period for receiving public opinions and comments to four weeks.They emphasised the significance and broad implications of the proposed Bill and stated that they require sufficient time to thoroughly examine the Bill and associated documents before continuing with its consideration. They proposed that the October 12 meeting be deferred by at least four weeks.The SBI is said to have flagged a potential gap between the date a registration ceases and the date a bank is informed, with officials indicating that transactions processed during that interval could be “questioned”.The SBI delegation suggested that restrictions take effect for the bank when it receives an authenticated communication, and sought protection for transactions processed before then.The bank also sought clarity on whether an account should be frozen or continue to operate once control passes to a government-appointed authority.It also asked who would be allowed to operate the account, whether incoming payments could still be credited and how existing balances, fixed deposits and interest would be treated.The Ministry of Law, in its presentation, told the JPC that when the assets of an NGO are transferred to a government appointed designated authority after its FCRA registration is cancelled or has lapsed, the organisation will have to give full and unhindered access to its books of account, records, properties.During its clause-by-clause briefing, the representatives of the law ministry also said that such organisation will also have to hand over to the designated authority all books, accounts, documents, securities, lockers, safe deposits, keys and movable assets.The Bill proposes that foreign contributions and assets bought with them temporarily pass to a government-designated authority when an organisation’s registration is cancelled, surrendered or ceases. They could end up with the authority permanently if the organisation does not regain registration within a prescribed period.The proposed amendment establishes strict statutory obligations and responsibilities for individuals or organisations whose foreign funding or assets are seized or vested under the Act.The sources said the officials of the two ministries gave detailed presentations, explaining the reasons behind bringing the amendments to the 2010 law and its future actions.All organisations and NGOs receiving foreign funding have to mandatorily register under FCRA and their activities are closely monitored by the home ministry acting as nodal authority.Sources said the SBI proposed keeping funds in the existing account under restrictions while the authority’s control is temporary. If that control becomes permanent, the money could be transferred on a specific order, the SBI said.As of August 31, the SBI had 25,432 accounts for organisations covered by the foreign funding law at its New Delhi Main Branch. Of these, 10,992 were dormant, frozen, suspended or otherwise restricted, with a combined balance of Rs 165.33 crore, according to the note presented to the JPC members.The bank also said smaller or rural associations that miss a registration renewal deadline could lose control of their funds immediately upon expiry. Ongoing programmes could be affected while funds and assets remain under the authority’s control, it said.The SBI said it supports a clear legal framework for managing foreign contributions when an organisation’s registration ends. It called for detailed rules, common procedures for banks and prompt updates on registration status before the new provisions take effect.In Tuesday’s meeting, additional secretary in the Ministry of Home Affairs Nitesh Kumar Vyas, law secretary Rajiv Mani, and Chetan Sharma, additional solicitor general of India, also gave their views on the FCRA Amendment Bill.