What is Foreign Contribution Regulation Act (FCRA), Aim, Validity & Foreign Donation in details?

Foreign Contribution Regulation Act (FCRA): The Ministry of Home Affairs has withdrawn the permit under the Foreign Contribution Regulation Act for U.K.-based NGO Save The Children’s Indian offshoot, Bal Raksha Bharat.

About Foreign Contribution Regulation Act

FCRA Act was enacted during the Emergency in 1976 amid apprehensions that foreign powers were interfering in India’s affairs by pumping money into the country through independent organisations.

What is the Aim of Foreign Contribution Regulation Act?

It aims to regulate foreign donations to individuals and associations so that they function in a manner consistent with the values of a sovereign democratic republic.

Provisions for Foreign Donation

The FCRA requires every person or NGO seeking to receive foreign donations to be:

  • Registered under the Act
  • To open a bank account for the receipt of foreign funds in the State Bank of India, Delhi.
  • To utilise those funds only for the purpose for which they have been re- ceived and as stipulated in the Act.
  • These registrations are granted to individuals or associations that have definite cultural, economic, educational, religious, and social programmes.
  • The applicant should not be fictitious or benami; and should not have been prosecuted.

Validity of Foreign Contribution Regulation Act

  • Once granted, FCRA registration is valid for five years.
  • NGOs are expected to apply for renewal within six months of the date of expiry of registration.
    Registration can be cancelled if an inquiry finds a false statement in the application.
  1. What is the Foreign Contributions Act in India?

    The FCRA (Foreign Contribution Regulation Act) was initially established in 1976 and underwent significant revisions in 2010. This legislation establishes mandatory registration procedures and imposes expenditure limitations on Indian nonprofit organizations that receive foreign donations.

  2. What is the Foreign Contribution Regulation Act 2023?

    Entities that were registered under the Foreign Contribution Regulation Act (FCRA) and are approaching the end of their five-year validity period between April 1, 2023, and September 30, 2023, will receive an extension.
    If they have applied for or plan to apply for renewal before their validity period expires, their registration will be extended until September 30, 2023, or until a decision is made on their renewal application, whichever comes first.

  3. Who is eligible for FCRA?

    An individual or association with a specific cultural, economic, educational, religious, or social agenda can accept foreign contributions by acquiring an FCRA registration certificate from the Central Government.

  4. What is FCRA and what is its purpose?

    The FCRA (Foreign Contribution Regulation Act) was enacted on 31st March 1976 with the primary objective of regulating the utilization of foreign contributions and hospitality by individuals and associations.
    Its purpose was to ensure alignment with the principles of a sovereign and democratic republic.

  5. What is the new limit of FCRA?

    Under the FCRA Rules of 2022, Indian residents can now receive up to Rs 10 lakh annually from relatives residing abroad without the need to inform the authorities. This revised limit marks a significant increase from the previous threshold of Rs 1 lakh.

Also Read:
What is the aim and Features of Vivad se Vishwas 2 Scheme?

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