What do the amended FCRA Rules say?, Pg11

Key Highlights:

• On June 22, the Union Ministry of Home Affairs (MHA) notified the Foreign Contribution (Regulation) Amendment Rules, 2026, amending the Foreign Contribution (Regulation) Rules, 2011.
• This marks the tenth amendment to the Rules under the Foreign Contribution (Regulation) Act, 2010 (FCRA).
• The amendments introduce stricter compliance norms for Non-Governmental Organisations (NGOs) receiving foreign funds.
• NGOs are now required to disclose specific activities, geographical scope, social media accounts, and publications.
• The definition of 'key functionary' has been broadened to include trustees, partners, and the Karta of a Hindu undivided family.

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Detailed Insights:

• The MHA regulates foreign donations in India through the FCRA to prevent adverse effects on internal security.
• The original legislation was enacted in 1976, repealed, and replaced by the FCRA, 2010, which has been amended multiple times.
• FCRA registration is valid for five years, after which NGOs must apply for renewal.
• Since 2015, over 18,000 NGO registrations have been cancelled, with 14,456 active FCRA-registered NGOs as of June 22.
• New registrations and existing ones must specify purposes for foreign donations from a prescribed list and the States/UTs of operation.
• The rules impose a fee for registration for each specified purpose and for each State or Union Territory an NGO operates in, increasing costs for multi-sectoral or multi-regional NGOs.
• Penalties for violations include fines of up to 30% of the misused amount or ₹1 lakh, whichever is higher, for unapproved use of funds or operations in unapproved areas.
• The amendments also tighten restrictions on political and ideological content in educational, cultural, and religious activities.

Key Concepts Involved:

• Foreign Contribution (Regulation) Act (FCRA): An Indian law regulating the acceptance and utilization of foreign contributions by individuals, associations, and companies to safeguard national interests.
• Ministry of Home Affairs (MHA): The nodal ministry responsible for implementing and monitoring the FCRA in India.
• Non-Governmental Organisation (NGO): A non-profit organization that operates independently of any government, typically for social, educational, religious, or cultural purposes.