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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