Why in news
The Union Home Ministry cancelled the Foreign Contribution Regulation Act (FCRA) registration of the parent entity of the non-profit Centre for Financial Accountability (CFA), which monitors and critically analyses the role of financial institutions and their impact on development, human rights, and the environment.
The FCRA Act stands for the Foreign Contribution (Regulation) Act, 2010.
It's a law in India that regulates how organizations and individuals can accept and use foreign donations.
Purpose:
Ensures foreign contributions come from legitimate sources and are used for legitimate purposes.
Prevents foreign funding from being used against India's national interest.
Applicability:
Applies to any person or organization that wants to receive foreign donations.
Extends to Indian citizens abroad and foreign branches of Indian companies.
Key Regulations:
Requires registration or prior permission from the government for most organizations to accept foreign funds.
Restricts how donations can be used, with limitations on administrative expenses.
Mandates reporting on how foreign contributions are received and utilized.
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