FCRA (Foreign Contribution Regulation Act) – UPSC Prelims

 FCRA (Foreign Contribution Regulation Act):
  • Foreign Contribution (Regulation) Act is an act of Parliament enacted in 1976 and amended in 2010 to regulate foreign donations. It aimed to ensure that such contributions do not adversely affect internal security.
  • Coverage: It is applicable to all associations, groups, and NGOs which intend to receive foreign donations. Individual or Hindu Undivided Family are also covered under FCRA.
  • Registration: An FCRA registration is mandatory for NGOs to receive foreign funds.
  • Purpose: Registered NGOs can receive foreign contributions for five purposes – social, educational, religious, economic and cultural.
FCRA Amendment Act, 2020:
  • The amendment has made it compulsory for the NGOs to open an exclusive Bank account with the State Bank of India in New Delhi to receive foreign donations.
  • The Ministry of Home Affairs had given the deadline of March 31st, 2021 to open this bank account.
Scroll to Top