Foreign Contribution (Regulation) Act (FCRA)

Why in the News?

Recently, the Ministry of Home Affairs (MHA) removed some important data from the Foreign Contribution (Regulation) Act (FCRA) website.

Key Points:

• The annual returns of NGOs and a list of NGOs with suspended licences are among the documents that have been deleted.

About FCRA:

Background:

• 1976: The FCRA was enacted during the Emergency in 1976 amid apprehensions of foreign powers interfering in India’s affairs.
• 2010: Amended in 2010 –
  • to “consolidate the law” on utilisation of foreign funds, and
  • “to prohibit” the use of foregin fund for “any activities detrimental to national interest”.
• 2020: The law was amended again in 2020, giving government strenghten control and scrutiny over the receipt and utilisation of foreign funds by NGOs.

Functions: It requires every person or NGO seeking to receive foreign donation to be –

• To open a bank account for the receipt of funds in State Bank of India, Delhi
• To utilise only for the purpose for which they have been received.
• Registered under the Act

Aim: To regulate foreign donations to individuals and organisation so that they operate “in a manner consistent with the values of a sovereign democratic republic”.

Prohibition: The Act prohibits the receipt of foreign funds by

• Organisations of a political nature
• Members of legislature and political parties or their office-bearers, and
• Journalists or newspaper and media broadcast companies,
• Judges and government servants,
• Candidates for elections

How is FCRA registration granted?

• FCRA registrations are given to individuals or associations that have, definite cultural, educational, economic, religious, and social programmes.

Validity: FCRA registration is valid for five years.