Foreign Contribution (Regulation) Act certificates mandatory for NGOs : HM
- The Ministry of Home Affairs (MHA) has extended the deadline till December 31 for NGOs to apply for renewal of their Foreign Contribution (Regulation) Act (FCRA) registration certificates.
- The registration is mandatory for associations and NGOs to receive foreign funds.
Foreign Contribution (Regulation) Act (FCRA):
- Foreign funding of persons in India is regulated under FCRA Act and is implemented by the Ministry of Home Affairs.
- The Act ensures that the recipients of foreign contributions adhere to the stated purpose for which such contribution has been obtained.
- Under the Act, organisations are required to register/renew 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.
- 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: Foreign 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.
- Reduction in use of foreign contribution for administrative purposes: 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.