Greenpeace India said on Tuesday it may be forced to shut down operations in the country within a month after the government blocked it from receiving foreign funding.

Executive director Samit Aich said the environmental group's cash reserves were drying up and it would soon no longer be able to afford staff salaries and office running costs.

Greenpeace has accused the right-wing Indian government's Ministry of Home Affairs (MHA) of freezing its bank accounts in a bid to close it down.

"My staff deserve to know the truth," Aich said in a statement. "We have one month left to save Greenpeace India from complete shutdown, and to fight MHA's indefensible decision to block our domestic accounts."

Last month the Indian government withdrew the green watchdog's foreign funding licence, citing violations of rules governing international financial transactions.

Following the ban Greenpeace said even many donors in India were unable to deposit money into the group's local accounts. It said it suspected they had been blocked by the government.

India has accused Greenpeace of damaging the country's economic interests through its campaigns against mining and nuclear projects.

Prime Minister Narendra Modi's government has clamped down on many activist groups since he took over last May, including restricting direct transfers of foreign donations. It blames campaigns by non-profit groups for causing delays in major industrial projects.

India recently banned the the US-based Ford Foundation from funding local charities without its permission, saying it was necessary to ensure funds are used for "bona fide welfare activities without compromising on concerns of national interest and security".

MHA said it had recently cancelled the foreign funding licences of 9,000 NGOs, claiming they had failed to file annual tax returns.

Aich said 340 employees would lose their jobs if Greenpeace India closes.