Paper: GS – II, Subject: Polity, Topic: Legal Issues, Issue: Regulation of Foreign Contributions to Non-Governmental Organisations (FCRA Compliance).
Context:
The Union government has strengthened the regulatory framework governing foreign contributions received by non-governmental organisations. The revised rules require greater disclosure of activities, geographical operations, publications and digital accounts. They seek to improve transparency and ensure that foreign funds are used only for approved purposes.
Key Takeaways:
Explanation:
Specified Categories and Activities:
- Organisations must register under one or more of five categories: social, economic, educational, cultural and religious.
- Social activities include public health, sanitation, nutrition, rehabilitation and disaster relief.
- Economic activities cover livelihood generation, agriculture, skill development, entrepreneurship and financial or digital inclusion.
- Educational activities include schools, scholarships, libraries, research institutions, think tanks and civic-awareness programmes.
- Cultural and religious activities include heritage conservation, museums, Indian arts and languages, religious education, pilgrim services and preservation of traditions.
Activity and Geographical Restrictions:
- Organisations must restrict foreign-funded programmes to the activities approved under their registered category.
- They must disclose the geographical scope of operations, including the relevant State or Union Territory.
- Separate fees may apply for each category and geographical area covered by an application.
Enhanced Disclosure Requirements:
- Organisations must disclose their official websites, social-media accounts and other digital platforms.
- They must also report publications issued during the year, including books, magazines and newspaper articles.
- These requirements allow authorities to compare declared objectives with publicly communicated activities.
Key Functionaries and Eligibility:
- The definition of a key functionary includes directors, office-bearers, trustees, partners, governing-body members, the Karta of a Hindu Undivided Family and persons controlling the organisation.
- Organisations having foreign nationals as key functionaries will ordinarily not receive approval unless specifically permitted.
Compliance and Penalties:
- New applicants must follow the revised requirements, while existing organisations must comply within the prescribed period.
- Violations may attract monetary penalties, including a minimum fine of ₹1 lakh in specified cases.
Conclusion:
The strengthened framework promotes accountability and traceability in the use of foreign contributions. However, multiple registrations and disclosures may increase compliance costs for genuine organisations. Regulation must therefore remain strict against misuse while facilitating legitimate developmental and humanitarian work.
Source: (The Hindu)
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