NEWS: The Central Government has amended the Foreign Contribution (Regulation) Act (FCRA), 2010 Rules àto strengthen transparency, accountability, and monitoring of NGOs receiving foreign funds.

ABOUT FCRA

• Foreign Contribution (Regulation) Act, 2010 (FCRA)
• Regulates the receipt and utilization of foreign contributions by individuals, associations, and NGOs.
• Administered by the Ministry of Home Affairs (MHA).
• Ensures foreign funds do not adversely affect India's sovereignty, integrity, security, public interest, or democratic institutions.

KEY AMENDMENTS

• NGOs must now register under one of five specific categories: Social, Educational, Economic, Religious, Cultural
• Foreign contributionsà can be used only for activities permitted under the approved category.
• Detailed activity lists have been prescribed for each category.

ENHANCED DISCLOSURE REQUIREMENTS

Mandatory disclosure of:

• Nature of activities
• Geographical area of operation
• Websites and social media accounts
• Publications by the organization or key functionaries
• NGOs must specify the States/UTs where they intend to operate.
• Separate approvals/fees may apply for operations across multiple regions.

RESTRICTIONS ON FOREIGN NATIONALS

Associations having foreign nationals as key functionaries will generally not be eligible for FCRA registration or prior permission unless specifically approved by the Central Government.

PENALTIES

Non-compliance may attract a minimum penalty of ₹1 lakh.

SIGNIFICANCE

• Enhances transparency and accountability in the use of foreign funds.
• Strengthens government oversight and monitoring of NGO activities.
• Seeks to safeguard national security and public interest.
• Creates a more regulated framework for foreign-funded organizations, though it may increase compliance requirements for NGOs.