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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