Government Extends Validity Of FCRA Registration

Context

Recently, the Ministry of Home Affairs (MHA) extended the validity of Foreign Contribution (Regulation) Act (FCRA) registration of non-government organizations (NGOs) and associations till June 30.

Extension of the Validity of FCRA Registration Certificates

• The Ministry has extended the validity of NGOs at least nine times since 2020 as the applications could not be processed within the stipulated time frame.

About the Foreign Contribution Regulation Act (FCRA)

• Foreign Contribution Regulation Act: It regulates and prohibits  the acceptance and utilization of foreign contributions by certain associations for any activities detrimental to the national interest.
  • The Act also prohibits the receipt of foreign funds by candidates for elections, journalists or newspaper and media broadcast companies, judges and government servants, members of the legislature and political parties or their office-bearers, and organizations of a political nature.
• Origin: The FCRA 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 organizations. 
• Duration of Approval Granted: FCRA registration is valid for five years. 
  • NGOs are expected to apply for renewal within six months of the registration expiry date. In case of failure to apply for renewal, the registration is deemed to have expired.

Amendments to the Foreign Contribution Regulation Act (FCRA)

• FCRA Amendment 2010: Enacted to consolidate the law on utilizing foreign funds, and to prohibit their use for any activities detrimental to national interest.
• FCRA Amendment 2020: The law was amended again, giving the government tighter control and scrutiny over NGOs’ receipt and utilization of foreign funds.
• Foreign Contribution (Regulation) (Amendment) Rules, 2022: In July 2022, the Ministry of Home Affairs (MHA) changed FCRA rules, increasing the number of compoundable offenses under the Act from 7 to 12. 
  • The other key changes were: 
    • Exemption from intimation to the government for contributions less than Rs 10 lakh, the earlier limit was Rs 1 lakh. 
    • Increase the time limit for the intimation of the opening of bank accounts.

DOWNLOAD PDF