The home ministry on Thursday ordered placing the Ford Foundation, one of the most powerful international funding organisations, on a watch list in "national interest and security" of the country, official sources said.
The ministry asked the Reserve Bank of India (RBI), through a letter, to instruct all banks and their branches to ensure that any fund flow from the foundation was first cleared by the ministry.
The action comes in the wake of intelligence reports that such organisations were creating hurdles in the country's development.
The action has been taken under section 46 of the Foreign Contribution (Regulation) Act (FCRA).