Highlight of FCRA Amendment Bill, 2020


📌✂️ No public servant, as defined in Sec 21 of IPC, can receive foreign contributions; It seeks to amend clause (c) of sub-section (1) of section 3 of the FCRA Act, to include “public servant” in the ambit of entities that are banned from accepting foreign funds.

📌✂️ Any kinds of transfer or sub-granting of FCRA funds is fully restricted. It means either fc funds can be used for sole purpose or returned back to donor.

📌✂️ NGOs can use only 20% i.e. decreased from existing 50% of foreign contributions towards admin expenses; Definition of Administrative Expenses is given in the Rule 5 of FCRA Rules, 2011.

📌✂️ Aadhaar number of all key functionaries mandatory with application for FCRA registration / renewal or prior permission.

📌✂️ NGOs can receive foreign funds only in designated FCRA account to be opened in SBI Bank branch in New Delhi. However, they may open one or more utilisation accounts in bank of their choice. This thing has created a huge confusion among NGO community. Please, note you can open bank account in such SBI branch at New Delhi by simply visiting to your nearest SBI Bank branch. You do not need to visit to New Delhi for this.

📌✂️ Government has also sought to give itself considerable powers in deciding which organisation shall cease to utilise its funds. The Bill proposes to do this by amending Section 11 of the FCRA Act to give itself the power to stop organisations from using funds it has received, but not utilised. Till now, the government was in the position to take such action only after the person or association was “found guilty” of violation of the FCRA Act.

📌✂️ FCRA Bill also seeks to give the government the power to decide on the period of suspension beyond 180 days.

To discuss your FCRA case, please book a time slot for tele-appointment at link below.

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