Why in News?

CII Presedient has recommended that GoImust relax the FCRA norms which are holding up global aid flows and ground level relief efforts of well-meaning NGOs to be better prepared for COVID-19 next waves.

About FCRA, 2010

• Foreign funding of persons and organisations in India is regulated under the FCRA Act.
• It is implemented by Ministry of Home Affairs.
• As per the act, individuals can accept foreign contributions without permission from MHA, subject to maximum limit of ₹ 25,000.
• The Act also seek to ensure that the recipients of such foreign contributions adhere to the stated purpose for which the said contribution was obtained.
• Organisations are required to (re)register themselves every five years.

Key Provisions of Foreign Contribution (Regulation) Amendment Act, 2020

• Prohibition to accept foreign contribution: It bars public servants from receiving foreign contributions.
  • Public servant includes a person in service or pay of the government or remunerated by the government for the performance of any public duty.
• Transfer of foreign contributions: It prohibits the transfer of foreign contribution to any other person who is not registered to accept foreign contributions.
• Aadhaar for registration: It makes Aadhaar mandatory for all key functionaries of organisation or individual receiving foreign contribution, as an identification document.
• FCRA account: Foreign contribution must be received only in an account asdesignated by the bank as FCRA account in State Bank of India, New Delhi branch.
• Reduction in use of foreign contribution for administrative purposes: It proposes that not more than 20% of the total foreign funds received could be used for administrative expenses.
• Surrender of certificate: The Act allows the GoI to permit a person to surrender their registration certificate.