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Title : Foreign Contribution Regulation Act

Date : Nov 10, 2021

Description :

Topic à Money-Laundering related issues:


  • Why in News:


  • The Ministry of Home Affairs (MHA) had recently 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.


  • What is Foreign Contribution (Regulation) Act (FCRA):


  • Foreign funding of persons in India are 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.


  • Prelims Hot-Link:
  • About FCRA
  • About FCRA Amendment Act


Tags : fcra, money laundring, black money

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