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FCRA Amendment Bill Likely in Lok Sabha Next Week

UPSC / SSC current affairs note · Polity

PolityGovernance

Why in news

The government is likely to introduce the Foreign Contribution (Regulation) Act Amendment Bill in the Lok Sabha next week, according to sources. This move could tighten or alter the rules governing foreign funding of NGOs and other entities in India.

Background

The Foreign Contribution (Regulation) Act (FCRA) regulates foreign donations to individuals and organizations in India. It was first enacted in 1976 and has been amended several times, most recently in 2020. The 2020 amendment introduced stricter provisions, including the requirement for Aadhaar numbers for key office bearers and restrictions on the use of foreign funds for administrative expenses.

Key facts

in5points

  1. The government is likely to introduce the Foreign Contribution (Regulation) Act Amendment Bill in the Lok Sabha next week.

  2. The bill aims to amend the existing FCRA, which regulates foreign contributions to Indian entities.

  3. The FCRA was originally enacted in 1976 and has been amended multiple times, with the latest major amendment in 2020.

  4. The 2020 amendment required Aadhaar numbers for office bearers and capped administrative expenses at 20% of foreign funds.

  5. The new amendment could further tighten rules or address implementation challenges.

  6. The bill is expected to be introduced in the Lok Sabha, the lower house of India's Parliament.

Prelims pointers

  • FCRA: Foreign Contribution (Regulation) Act, 1976
  • Amended in 2020 (FCRA Amendment Act, 2020)
  • Regulates foreign contributions to individuals, associations, and companies
  • Administered by the Ministry of Home Affairs
  • Key provisions: Aadhaar requirement, 20% administrative expense cap, mandatory bank account in SBI New Delhi branch

Mains angles

  • Discuss the need for regulating foreign funding in India and the balance between national security and civil society freedom.
  • Critically examine the impact of FCRA amendments on the functioning of NGOs and civil society organizations.
  • Analyze the constitutional validity of FCRA provisions in light of freedom of association and expression.