The Prevention of Money-Laundering (Maintenance of Records) Rules were amended in 2023 to deal with clients that are non-profit organisations.
Key facts
- Rule
- PMLA (Maintenance of Records) Rules, as amended in 2023, cover non-profit clients
- Bank’s duty
- Register the NGO on NGO Darpan if it is not already registered
- Records
- Kept for five years after the account is closed
- Keep consistent
- Name, PAN, registration number and address on Darpan should match the registration certificate and latest change report
- Signatories changed?
- File a change report within 90 days
What the rules require
Banks and other reporting entities must register the details of a non-profit client on the NGO DARPAN portal if it is not already registered, and keep the registration records for five years after the relationship ends or the account is closed.
What it means for a trust or society
- A bank may ask for the NGO DARPAN ID when opening or reviewing an account.
- The name, PAN, registration number and address on the portal should match the registration certificate and the latest change report.
- When trustees or addresses change, both the Charity Commissioner’s record and the DARPAN profile should be updated.
Frequently asked questions: bank accounts and DARPAN
Can a bank refuse to open an account without a DARPAN ID?
Banks are required to register non-profit clients on the portal and many ask for the ID at the time of opening or review, so keeping it ready avoids delay.
What should the trust keep ready for the bank?
Registration certificate, trust deed, PAN, the latest change report or register extract, identity and address proof of the trustees who will operate the account, and the board resolution authorising them.
What if the trust changes its signatories?
The bank will ask for the resolution and the updated register extract, which is why the change report should be filed within 90 days.
Related
See the page on NGO DARPAN registration for the full procedure.
If you need assistance with this matter, you may contact this office through the Contact page.