In news

The amendments to the Foreign Contribution Regulation Act (FCRA) enacted last year that among others made it compulsory for NGOs to open a bank account in Delhi

Issue

• It has crippled the work of many organisations who are unable to receive foreign funds.
• Registered NGOs can receive foreign contribution for five purposes — social, educational, religious, economic and cultural.
• An FCRA registration is mandatory for NGOs to receive foreign funds.
• There are 22,591 FCRA registered NGOs.
• An NGO has now moved the Delhi High Court seeking exemption from the Union Home Ministry’s March 31 deadline to open an FCRA account with the SBI branch at Parliament Street.

Foreign Contribution (Regulation) Act (FCRA), 2010

• Foreign funding of persons in India is regulated under FCRA Act and is implemented by the Ministry of Home Affairs.
• Individuals are permitted to accept foreign contributions without permission of MHA.
• However, the monetary limit for acceptance of such foreign contributions shall be less than Rs. 25,000.
• The Act ensures that the recipients of foreign contributions adhere to the stated purpose for which such contribution has been obtained.
• Under the Act, organisations are required to register themselves every five years.

Source: The Hindu