FCRA Rules in India UPSC NOTE

 Why in news

  • The Union Home Ministry has cancelled the Foreign Contribution Regulation Act (FCRA) registration of a Christian organisation — Tamil Nadu Social Service Society (TASOSS).

  • The non-governmental organisation is the second Tamil Nadu-based Christian association whose FCRA registration has been cancelled this year.

  • According to its website, which is under construction, TASOSS is an official organisation of the Tamil Nadu Catholic Bishops Conference.

FCRA and basic details

  • FCRA was enacted during the Emergency in 1976 amid apprehensions that foreign powers.

  • Foreign powers are pumping money into the India through independent organisations.

  • The law sought to regulate foreign donations to individuals and associations so that they functioned in a manner consistent with the values of a sovereign democratic republic.

The FCRA requires every person or NGO seeking to receive foreign donations to be:

  • Registered under the Act

  • To open a bank account for the receipt of the foreign funds in State Bank of India, Delhi

  • To utilize those funds only for the purpose for which they have been received and as stipulated in the Act.

  • FCRA registrations are granted to individuals or associations that have definite cultural, economic, educational, religious, and social programmes.

  • FCRA registration is valid for 5 years, and NGOs are expected to apply for renewal within six months of the date of expiry of registration.

  • The government can also cancel the FCRA registration of any NGO if it finds that the NGO is in violation of the Act.

  • If it has not been engaged in any reasonable activity in its chosen field for the benefit of society for two consecutive years, or if it has become defunct.

  • Once the registration of an NGO is cancelled, it is not eligible for re-registration for three years.

How it related to NGO

  • The NGO is registered as a “social” organisation.

  • Registered associations under the FCRA can receive foreign contributions for social, educational, religious, economic and cultural programmes. 

  • FCRA registration is mandatory to receive foreign donations.

  • Since 2015, the FCRA registration of more than 16,000 NGOs has been cancelled on account of “violation”. 

  • As of February 3, there were 17,019 FCRA-registered NGOs active in the country.

  • The FCRA registration of nearly 6,000 NGOs ceased to operate from January 1, 2022, as the MHA either refused to renew their application or the NGOs did not apply.



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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: FCRA Rules in India UPSC NOTE
FCRA Rules in India UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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