FCRA (Indian Economy)
FCRA (Indian Economy)
Why In News:
The Foreign Contribution (Regulation) Amendment Bill, seeks to expand state control over civil society organisations receiving foreign funding, raising concerns about shrinking democratic space.
What is FCRA?
The Foreign Contribution (Regulation) Act, 2010 (replacing the 1976 Act) regulates acceptance and utilisation of foreign contri butions by Indian organisations.
Administered by the Ministry of Home Affairs.
Requires all organisations receiving foreign donations to register under FCRA.
Prohibits certain categories: legislative bodies, political parties, election candidates, media, and judges from receiving foreign funding.
Key 2020 Amendment Changes
Prohibition on sub-grants: The amendment completely prohibited the transfer of foreign contributions to any other individual, association, or registered company.
Foreign contributions must be received only in a designated FCRA account at SBI New Delhi Main Branch.
Administrative expenses capped at 20% of foreign contributions received (reduced from 50%).
Key Facts for Prelims
The Supreme Court upheld the 2020 amendments as constitutional in Noel Harper v. Union of India (2022).