Recently, the ministry of home affairs has cancelled the Foreign contribution regulation Act(FCRA), 2010 registration of various NGOs along with missionaries of charity groups. More than 4/5th of the applications of the 22000 Plus NGOs await scrutiny and hence will lose their ability to access international funding.

FCRA 2010: The Hindu Analysis

  • Foreign funding of persons in India is regulated under FCRA act and is implemented by the ministry of Home affairs.

  • Individuals are permitted to assess foreign contributions without permission of the ministry of home affairs but the monetary limit should be less than 25000.

  • The act ensures that the recipient a foreign contribution adheres to the stated purpose for which search contribution has been obtained.

  • Under the act organisations are required to register themselves every 5 years.

  • Registered NGOs can receive foreign contributions for 5 purposes- social,educational, religious, economic and cultural.

FCRA Amendment act 2020: The Hindu Analysis

  • Prohibition to accept foreign contribution-The act bars public servants from receiving foreign contribution.

  • The act prohibits the transfer of foreign contribution to any other person not registered to accept foreign contribution.

  • The act makes Aadhaar number mandatory for all office bearers, directors, aur ki functionaries of a person receiving foreign contribution, as an identification document.

  • The act states that foreign contributions must be received only in an account designated by the bank as FCRA account in such branches of SBI, New Delhi.

  • The act proposes that not more than 20% of the total foreign fund received could be defrayed for administrative expenses. In FCRA 2010 the limit was 50%.

  • The act allows the central government to permit a person to surrender their registration certificate.

 CRITICISMS- Today Current Affairs

  • FCRA prohibits NGOs from receiving foreign contributions for activities harmful to “public interest” or national security however they are ambiguous terms and are left to MHA officials to define.

  • NGOs under scrutiny are related to work  in sensitive areas like-pollution and climate change issues, human rights, child labour and human slavery, health and religious NGOs , particularly Christian and Islamic charities. It remains to be seen the positive outcomes after such action as government rationale behind it is not clear.

  • The political parties are able to access foreign funds for their campaign through electoral bonds under the same FCRA that seeks to restrict funds of NGOs.

  • It affects Article 19(1)(c) of the constitution violation of the right to freedom of speech and freedom of association constitutes human right violation.

  • In April 2016 the United nation on the rights to freedom of peaceful assembly and of association analysed that the terms public interest and national security are too vague and give the state excessive discretionary power to apply the provision in an arbitrary manner.


  Way forward

  • Excessive regulation affects the working of the NGOs which help in filling the gaps where government aid fails to reach.

  • The Government’s move could  result in an estimated 30% drop in international non-profit contribution.

  • NGOs offer philanthropic help to the poorest and the most vulnerable and hence need to be given more autonomy.

  • Without evidence that there is divergence in the utilisation of the foreign contribution, Hasty and stringent steps should not be taken.

Here we mention all information about NON-RENEWAL OF FCRA LICENSE OF NGO  Today Current Affairs.

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