Context:
Centre amended the FCRA
FCRA:
- Foreign contribution means donation, delivery or transfer made by any foreign source of any article, currency, or security.
- Foreign funding of persons in India is regulated under FCRA act.
- Implemented by – Ministry of Home Affairs
- Individuals are permitted to accept foreign contributions without permission of MHA.
- However, the monetary limit for acceptance of such foreign contributions shall be less than Rs. 25,000.
- Validity – 5 years and NGOs are expected to apply for renewal within 6 months of date of expiry of registration.
- FCRA criteria for Foreign Donations Recipients –
- Organisations are required to register themselves every 5 years.
- Recipients of foreign contributions adhere to the stated purpose for which such contribution has been obtained.
- Open a bank account for the receipt of the foreign funds in State Bank of India, Delhi
Foreign Contribution (Regulation) Amendment Rules, 2022:
- Amending Foreign Contribution (Regulation) Rules, 2011, now individuals can send up to ₹10 lakhs without informing the government. (₹1 lakh earlier)
- If amount exceeds ₹10 lakhs, individuals will have 3 months to inform the government against 30 days earlier.
- Section 3 of FCRA act 2010 still bars political parties, legislature members, election candidates, government servants, judges, journalists, and media houses from receiving foreign contribution.
- However, as per section 4(e) of FCRA,2010 and Rule 6 of FCRR ,2011, even the persons prohibited i.e., persons not permitted to accept foreign contribution, are allowed to accept foreign contribution from their relatives.
- Time limit prescribed for intimation to Central Government for application of obtaining ‘registration’ or ‘prior permission’ under FCRA to receive funds has been increased from 15 days to 45 days.
- List of compoundable offences under FCRA was increased to 12 from 7.
Latest Amendments:
- NGOs engaged in publication-related activities and receiving foreign contributions will –
- not be able to publish any newsletter and
- must get a certificate from the Registrar of Newspapers for India that it does not circulate any news content.
Source: IE
Previous Year Question
What does venture capital mean?
[UPSC Civil Services Exam – 2014 Prelims]
(a) A short-term capital provided to industries
(b) A long-term start-up capital provided to new entrepreneurs
(c) Funds provided to industries at times of incurring losses
(d) Funds provided for replacement and renovation of industries
Answer: (b)