The government all set to amend the FCRA

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The Indian Government is all set to change the Foreign Contribution (Regulation) Act. It has decided to make Aadhar card a mandatory identification document for all the office-bearers, directors, and other key officials of an NGO or any other organization receiving foreign donations.

The amendment to FCRA was introduced in the Lok Sabha on Sunday by Nityanand Rai, Minister of State for Home.

The Centre says this amendment is crucial to have better transparency and accountability in the receipt. Also, it will facilitate better utilization of the foreign contributions worth thousands of crores every year sent to NGOs who are working for the betterment of the society.

The Foreign Contribution (Regulation) Amendment Bill, 2020, suggests to include ‘public servant; and “corporation owned or controlled by the government” to the list of those who are not eligible to get foreign donations.

The FCRA Bill is essential for regulating foreign donations and ensuring that such contributions do not hamper the internal security of the country. First enacted in the year 1976, this act was amended in 2010 when the Union Home Ministry decided to regulate foreign donations.

In 2016, the Home Ministry cancelled the licenses of the lawyer Indira Jaising and lawyer Anand Grover for certain violations.

The FCRA Bill says that not more than 20% of the total foreign funds received could be defrayed for administrative expenses. Currently, the limit for the same is 50%.