Key Highlights of Foreign Contribution Regulation Amendment Bill (2020)

The key amendments in FCRA Amendment Bill, 2020 are : 

Prohibition to accept foreign contribution  :  The Bill bars public servants from receiving foreign contributions. “Public servant” includes any person who is in service or pay of the government, or remunerated by the government for the performance of any public duty. 

Prohibition on transfer of grants :  The Bill prohibits the transfer of grant received under FCRA to any other person or organization. 

Aadhaar  for  registration :  The Bill makes Aadhaar number mandatory for all office bearers, directors or key functionaries of a person receiving foreign contribution, as an identification document.

FCRA  Bank account   :  Under the Act, a registered person must accept foreign contribution only in a single branch of a scheduled bank specified by them.  The Bill amends this to state that foreign contribution must be received only in an account designated by the bank as “FCRA account” in such branch of the State Bank of India, New Delhi, as notified by the central government. 

Reduction in use of foreign contribution for administrative purposes: The Bill reduces the cap on administrative expenses that can be funded by FCRA funds from 50% to 20%. 

Surrender of certificate: The Bill allows the central government to permit a person to surrender their registration certificate.

The government may do so if, post an inquiry, it is satisfied that such person has not violated any provisions of the FCRA 2010, and the management of its foreign contribution has been vested in an authority prescribed by the government.

Tag: Amendment, FCRA (2010), Foreign Contribution, Foreign Contribution (Regulation) Act