FOREIGN CONTRIBUTION REGULATION ACT (FCRA)

About FCRA:

• In general, FCRA requires every person or NGO wishing to receive foreign donations to be registered under the Act, open a bank account to receive foreign funds from the State Bank of India, Delhi, and use those funds only on purpose as stipulated in the Act.

History of FCRA:

• FCRA was formed during the Emergency of 1976 in the wake of fears that foreign powers were interfering in Indian affairs by investing in private organizations. These concerns have been raised in Parliament since 1969.
• The law sought to regulate external contributions from individuals and organizations to operate in a manner consistent with the principles of an independent democratic republic.

Amendment of FCRA:

• The UPA government ratified the amended FCRA in 2010 to incorporate the law on foreign currency use and restrict its use in any activities that harm national interests.
• The current government amended the law in 2020, giving the government more control and oversight of the adoption and use of foreign funds by NGOs.