What is the News ?

The Ministry of Home Affairs (MHA) has made changes to the regulations for Non-Governmental Organizations (NGOs) registered under the Foreign Contribution Regulation Act (FCRA). They now require these NGOs to furnish information about assets, both movable and immovable, that have been established using foreign funds in their annual returns.

Facts About:

• FCRA is a law governing foreign contributions, especially monetary donations, to NGOs and entities in India.
• Originally passed in 1976 and significantly amended in 2010.
• Aims to prevent foreign organizations from influencing India's politics, society, economy, or religion for harmful purposes.
• Administered by the Ministry of Home Affairs (MHA).
• Defines 'foreign contribution' as donations, currency, or securities from foreign sources.
• Allows individuals, associations, companies, and others to receive foreign contributions with FCRA registration.
• Funds must be used for the intended purpose, with a maximum of 20% for administrative expenses.
• Requires NGOs to open a designated bank account with the State Bank of India, Delhi.
• Registration is mandatory for NGOs and can be renewed if they meet requirements.
• Cancellation is possible for false statements or illegal activities.
• Suspension and fund-freezing authority were also granted to the Ministry.
• Challenges to government orders can be filed in the High Court.