Foreign Contribution Regulation Act

Published: 3rd May, 2024

Context

The Union Home Ministry cancelled the registration of various NGOs for alleged violation of various provisions of the Foreign Contribution Regulation Act.

Regulation of Foreign Funding in India

In India, it is necessary to register with the FCRA to receive foreign funds. The License is granted by the Union Home Ministry.
Validity: Five years. NGOs are expected to seek renewal within six months of the registration expiring.
Cancellation:The government can also cancel the FCRA registration of any NGO if it finds that the NGO is in violation of the Act.Once an NGO's registration is terminated, it is ineligible to re-register for 3 years.

Fact Box: About Foreign Contribution Regulation Act

The FCRA was originally enacted in 1976.
It creates registration requirements and spending restrictions on Indian non-profit organizations receiving foreign donations.
The most recent 2020 amendments of the FCRA brought in additional restrictions, banning subgranting among FCRA-registered organizations, setting a severe cap on administrative spending, and further centralizing control of FCRA funding with the State Bank of Delhi and the Ministry of Home Affairs.

CURRENT AFFAIRS FOR UPSC IAS

Foreign Contribution Regulation Act

Still Have Questions?

CURRENT AFFAIRS FOR UPSC IAS

Foreign Contribution Regulation Act

Still Have Questions?

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