Foreign Contribution Regulation Act: 
Introduction:
The Foreign Contribution Regulation Act (FCRA) is a crucial legislation in India that regulates the acceptance and utilization of foreign contributions by individuals, organizations, and associations. It was enacted in 1976 to monitor and control the inflow of foreign funds to prevent their misuse for unlawful activities.
Body:
The FCRA regulates the acceptance and utilization of foreign contributions by individuals, organizations, and associations in India. It mandates that any entity that wishes to receive foreign contributions must be registered under the Act, and must adhere to its provisions.
The Act defines foreign contribution as the donation, delivery, or transfer of any currency, security, or other valuable property made by any foreign source. It also includes any income from such contributions.
The FCRA requires that any entity seeking to receive foreign contributions must first obtain a certificate of registration from the Ministry of Home Affairs. The certificate is valid for five years, after which it must be renewed.
In addition to registration, the Act also lays down guidelines for the utilization of foreign contributions. It prohibits the use of such contributions for activities that are detrimental to the national interest, or that promote communal, caste, or sectarian disharmony.
The Act also mandates that any entity that receives foreign contributions must maintain proper accounts and records, and submit annual reports to the government detailing the sources and utilization of the contributions.
The Act defines foreign contribution as the donation, delivery, or transfer of any currency, security, or other valuable property made by any foreign source. It also includes any income from such contributions.
The FCRA requires that any entity seeking to receive foreign contributions must first obtain a certificate of registration from the Ministry of Home Affairs. The certificate is valid for five years, after which it must be renewed.
In addition to registration, the Act also lays down guidelines for the utilization of foreign contributions. It prohibits the use of such contributions for activities that are detrimental to the national interest, or that promote communal, caste, or sectarian disharmony.
The Act also mandates that any entity that receives foreign contributions must maintain proper accounts and records, and submit annual reports to the government detailing the sources and utilization of the contributions.
Criteria:
The FCRA requires every person or NGO seeking to receive foreign donations to be registered under the Act.
To open a bank account for the receipt of the foreign funds in State Bank of India, Delhi
to utilize those funds only for the purpose for which they have been received and as stipulated in the Act.
FCRA registrations are granted to individuals or associations that have definite cultural, economic, educational, religious, and social programmes.
To open a bank account for the receipt of the foreign funds in State Bank of India, Delhi
to utilize those funds only for the purpose for which they have been received and as stipulated in the Act.
FCRA registrations are granted to individuals or associations that have definite cultural, economic, educational, religious, and social programmes.
Penalties:
The FCRA provides for penalties for any violation of its provisions. It stipulates that any person who accepts foreign contributions without being registered under the Act is liable for imprisonment for a term that can extend up to five years, and a fine.
The Act also provides for the cancellation of registration if an entity violates any of its provisions. In such cases, the entity will be prohibited from receiving any foreign contributions for a period of three years.
The Act also provides for the cancellation of registration if an entity violates any of its provisions. In such cases, the entity will be prohibited from receiving any foreign contributions for a period of three years.
FCRA 2022 Rules:
In July 2022, the MHA effected changes to FCRA rules which increased the number of compoundable offences under the Act from 7 to 12.
The other key changes were exemption from intimation to the government for contributions less than Rs 10 lakh – the earlier limit was Rs 1 lakh — received from relatives abroad, and increase in time limit for intimation of opening of bank accounts.
The other key changes were exemption from intimation to the government for contributions less than Rs 10 lakh – the earlier limit was Rs 1 lakh — received from relatives abroad, and increase in time limit for intimation of opening of bank accounts.
Conclusion:
The FCRA Act is an essential legislation in India that regulates the inflow of foreign contributions and prevents their misuse for unlawful activities. It plays a crucial role in promoting transparency and accountability in the utilization of foreign funds. Therefore, it is important for all entities that receive foreign contributions to adhere to its provisions to avoid penalties and cancellation of registration.
