Foreign Contribution (Regulation) Act (FCRA)

Context: The Union Government has proposed amendments to the Foreign Contribution (Regulation) Act, 2010 to tighten regulation of foreign funds and modify penalties.

About FCRA:

  • Enacted in 1976; replaced by the FCRA, 2010
  • Regulates receipt and utilisation of foreign contributions by individuals and organisations
  • Administered by the Ministry of Home Affairs (MHA)
  • Registration valid for 5 years; renewal to be applied within 6 months before expiry
  • Mandatory FCRA account at SBI, New Delhi Main Branch (NDMB)
  • Prohibits foreign funding to political parties, MPs/MLAs, government servants, and election candidates
  • 2020 Amendment: Reduced administrative expense cap from 50% to 20% and prohibited sub-granting

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