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Foreign Contribution (Regulation) Act (FCRA)

  • IASbaba
  • May 12, 2022
  • 0
Indian Polity & Constitution
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In News: Recently, CBI has arrested officials of FCRA division of Ministry of Home Affairs on the charge of corruption

The officials were charged for allegedly helping NGOs get Foreign Contribution Regulation Act (FCRA) clearance illegally.

Foreign Contribution (Regulation) Act (FCRA), 2010

  • Foreign funding of voluntary organizations in India is regulated under FCRA act which is implemented by the Ministry of Home Affairs.
  • The Acts ensures that the recipients of foreign contributions adhere to the stated purpose for which such contribution has been obtained.
  • Under the Act, organizations are required to register themselves every five years.
  • Registered NGOs can receive foreign contributions for five purposes: Social, educational, religious, economic and cultural.

Foreign Contribution (Regulation) Amendment Act, 2020:

  • Prohibition to accept foreign contribution: The Act bars public servants from receiving foreign contributions.
  • Public servant includes any person who is in service or paid by the government, or remunerated by the government for the performance of any public duty.
  • Transfer of foreign contribution: The Act prohibits the transfer of foreign contribution to any other person not registered to accept foreign contributions.
  • Aadhaar for registration: The Act makes Aadhaar number mandatory for all office bearers, directors or key functionaries of a person receiving foreign contribution, as an identification document.
  • FCRA account: The Act states that foreign contributions 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.
  • Reduction in use of foreign contribution for administrative purposes: The Act 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 Act allows the central government to permit a person to surrender their registration certificate
  • If an NGO fails to comply with the above mentioned criteria its license will not be renewed by MHA
  • Recently the Union Ministry of Home Affairs (MHA) has cancelled the Foreign Contribution (Regulation) Act (FCRA), 2010 registration of various non-governmental organizations (NGOs) that are non compliant with the rules

Previous Year Questions (PYQs)

Q.1) At the national level, which ministry is the nodal agency to ensure effective implementation of the Scheduled Tribes and other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006? (2021)

  1. Ministry of Environment, Forest and Climate Change
  2. Ministry of Panchayati Raj
  3. Ministry of Rural Development
  4. Ministry of Tribal Affairs

Source: Indian Express

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