FRCA licensing Issues (GS Paper-II, Polity,Constitution,Governance and International Relations) Source: The Hindu

FRCA licensing Issues (GS Paper-II, Polity,Constitution,Governance and International Relations) Source: The Hindu

FRCA licensing Issues- Today Current Affairs


The renewal of the license of Missionaries of Charity (order founded by Mother Teresa) was refused by the Union Home Ministry ,stating that some adverse inputs were noticed in the NGO. 

Background: The Hindu Analysis

  • Ministry of Home Affairs canceled the license of about 6600 organizations to receive money from Overseas under the Foreign Contribution (Regulation) Act 2010 between 2016 to 2020. 

  • Recently in 2020 FCRA Amendment Bill was passed by the Indian Parliament. 

What is FCRA? The Hindu Analysis

  • The  objective of the Act is to supervise and regulate the foreign funds and donations to the NGOs and ensure that such funds do not affect the internal security of the country. 

  • The act came into force in 1976 and was amended in 2010 and then in 2020. 

  • Ministry of Home Affairs is the nodal agency for the implementation of the FCRA. 

  • The union government has the ultimate power to declare an organization  unfit to receive the foreign funding on the ground  of being political in nature under article 5 of FCRA 2010. 

Latest amendment, FCRA Bill 2020: The Hindu Analysis

Key provisions 

  • Public servants are not allowed to receive foreign funding. 

  • There is prohibition on the transfer of foreign contribution to any other person. 

  • The bill define the term person as an individual and Association or a registered company. 

  • Only FCRA accounts must be used for the deposition of the foreign contribution. 

Need for Amendment: The Hindu Analysis

  • Between 2010-2019 the inflow of the foreign funds increased and almost doubled. But the funds have not been utilized for the registered purpose. For Example, recently the license of 6 NGOs were suspended for allegedly using the fund for the religious conversion. 

  • There has been several instances of lack of proper maintenance of accounts and poor adherence to statutory compliance. 

  • These have adversely undermined the internal security of the country. 

Issues associated with Amendment: The Hindu Analysis

  • Several checks and caps on the administrative expenses would make the functioning of even the big NGOs impossible. This would also impact the livelihood of the workers associated with the NGOs. 

  • The NGOs are of diverse nature. And sometimes it may happen that in order to curtail the dubious activities of the organizations, the government may fail to recognise its diversity. This may hamper the competitiveness of the NGOs. 

  • The amendment also fails to comply with India’s constitutional provision to protect fundamental rights to freedom of association,expression etc. 

  • It also does not resonate with the International laws. Example according to the United Nation Human Right Commission no laws should delegitimize activities in defense of human rights.

Way forward: The Hindu Analysis

  • NGOs play a very pivotal role in the country specially in the area where the government fails to render its duty. 

  • It must be noted and understood that the sharing of ideas and resources across the border is important for the development of the world as whole. 

  • The government shall adhere and stick to the ideas of Vasudeva Kutumbakam and shall not interfere and discourage the funding unless there is a strong reason for it.

Here we mention all information about FRCA licensing Issues Today Current Affairs.


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