Highlights

The government introduced the Foreign Contribution Regulation (Amendment) Bill 2020 in Lok Sabha lower house of Parliament to amend the FCRA act, 2010.

Key Provisions of the Bill

  • The FCR bill proposes to include those public corporations owned and controlled by the Indian Govt under the list of entities that are not eligible to receive foreign funding.
  • Bill proposes to include public servants under the list.
  • The FCR bill  makes Aadhar mandatory for all the non-govt organisations and other organisations that seeks foreign contributions.
  •  Bill also proposes to limit the foreign funds received under the act from 50 per cent to 20 per cent.
  • Govt of India would now be empowered to question a violator using the funds received from a foreign organisation.
  • As per the new provisions, Persons who have been granted certificate for the foreign funding will receive funding only through accounts that are designated as FCRA savings account.

Aim of the FCR Bill

  • The FCR bill is aimed at amending the provisions of the FCRA act 2010 to streamline the funding procedure.
  • FCR bill aims to increase transparency and accountability.
  • Bill also aims to strengthen the compliance mechanism in the utilisation of foreign contribution.

Backdrop

The Yearly inflow of foreign funds has doubled between 2010 & 2019. But, the contributions received in this route were not being utilised by the recipient registered under FCRA 2010. Thus, to regulate these foreign contributions under the act amendments has been proposed.

Conditions under the Act to use funds

The FCR act imposed following conditions to use the foreign funds:

  • The funds received by a Non govt organisation from foreign contributor must be used for the purpose the funds have been received for.
  • The funds should not be used in speculative activities.
  • The funds should not be transferred to an entity that has not been registered under the FCRA 2010.

Foreign Contribution Regulation Amendment Bill 2020 Foreign Contribution Regulation Amendment Bill 2020