In newsThe Ministry of Home Affairs (MHA) has laid down a charter for banks which says that “donations received in Indian rupees” by non-governmental organisations (NGOs) and associations from “any foreign source even if that source is located in India at the time of such donation” should be treated as “foreign contribution”.
Changes
- FCRA regulates foreign donations and ensures that such contributions do not adversely affect the internal security of the country.
- All NGOs seeking foreign donations have to open a designated FCRA account at the SBI branch by March 31.
- The NGOs can retain their existing FCRA account in any other bank but it will have to be mandatorily linked to the SBI branch in New Delhi.
Penal provisions
- Any violation by the NGO or by the bank may invite penal provisions of The FCRA, 2010.
- ” It added that “donations given in Indian rupees (INR) by any foreigner/foreign source including foreigners of Indian origin like OCI or PIO cardholders” should also be treated as foreign contribution.
Foreign Contribution (Regulation) Act, 2010
- FCRA regulates foreign donations and ensures that such contributions do not adversely affect the internal security of the country.
- The Act, first enacted in 1976 was amended in the year 2010 and then 2020.
- It was amended by Parliament and a new provision that makes it mandatory for all NGOs to receive foreign funds in a designated bank account at the State Bank of India’s New Delhi branch was inserted.
Source: The Hindu
