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NGO WORKING ON RIGHTS ISSUES LOSES FCRA REGISTRATION

Why in the news?

• The Union Home Ministry has cancelled the FCRA registration of CACIM, the parent entity of the Centre for Financial Accountability (CFA).
• The cancellation is attributed to incorrect filings of returns for the years 2018 and 2019.

Source: RJA

Foreign Contribution Regulation Act (FCRA):

• Enacted by Parliament, FCRA regulates foreign contributions to NGOs and entities in India, emphasizing monetary donations.
• Originally passed in 1976, extensively amended in 2010.

Aims and Scope:

• Aims to prevent foreign entities from influencing Indian politics, social, economic, or religious matters in ways detrimental to public interest.
• Administered by the Ministry of Home Affairs (MHA).

Definition and Scope of Contributions:

• “Foreign contribution” includes articles, currency, or securities from foreign sources, excluding personal gifts valued below one lakh rupees.
• Contributions from NRIs using personal savings via normal banking channels are exempt.

Recipients of Foreign Contributions:

• Eligible recipients include individuals, associations, companies, etc., with specific cultural, economic, educational, religious, or social objectives.
• Mandatory FCRA registration or prior permission from the Central Government is required.

Registration Requirements:

• NGOs must open a designated bank account in the State Bank of India, Delhi, for foreign funds.
• Registration is mandatory and initially valid for five years, ensuring transparency and accountability.