Foreign Contribution (Regulation) Amendment Act, 2020

  • Prohibition to accept foreign contribution: The Bill bars public servants from receiving foreign contributions.
    • Public servant includes any person who is in service or pay of the government, or remunerated by the government for the performance of any public duty.
    • The FCRA 2010 also bars certain persons to accept any foreign contribution. These include: election candidates, editor or publisher of a newspaper, judges, government servants, members of any legislature, and political parties, among others.
  • Transfer of foreign contribution: The Bill prohibits the transfer of foreign contribution to any other person.
    • The term ‘person’ under the Bill includes an individual, an association, or a registered company.
    • The FCRA 2010 allows transfer of foreign contributions to persons registered to accept foreign contributions.
  • Aadhaar for registration: The Bill makes Aadhaar number mandatory for all office bearers, directors or key functionaries of a person receiving foreign contribution, as an identification document. [Foreigners → Passport  or OCI Card]
  • FCRA account: Contribution must be received only in an account designated by the bank as FCRA account in such branches of the State Bank of India, New Delhi. No funds other than the foreign contribution should be received or deposited in this account.
    • The person may open another FCRA account in any scheduled bank of their choice for keeping or utilising the received contribution.
  • Restriction in utilisation of foreign contribution: The Bill allows the government to restrict usage of unutilised foreign contribution. This may be done if, based on an inquiry the government believes that such person has contravened provisions of the FCRA.
  • Reduction in use of foreign contribution for administrative purposes: The Bill proposes that not more than 20% of the total foreign funds received could be defrayed for administrative expenses. In FCRA 2010 the limit was 50%.
  • Surrender of certificate: The Bill allows the central government to permit a person to surrender their registration certificate.

Foreign Contribution (Regulation) Act (FCRA), 2010

  • The FCRA initially was enacted during the Emergency in 1976.
  • 2010 amendment: An amended FCRA was enacted under the UPA government in 2010 to “consolidate the law” on utilisation of foreign funds, and “to prohibit” their use for “any activities detrimental to national interest”.
  • Foreign funding of persons in India is regulated under FCRA act and is implemented by the Ministry of Home Affairs.
  • Individuals are permitted to accept foreign contributions without permission of MHA. However, the monetary limit for acceptance of such foreign contributions shall be less than Rs. 25,000.
  • The Act ensures that the recipients of foreign contributions adhere to the stated purpose for which such contribution has been obtained.
  • Under the Act, registered NGOs can receive foreign contributions only for the purposes of/activity related to social, educational, religious, economic and cultural nature.
  • Under the Act, organisations are required to register themselves every five years.

 

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