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Union home ministry extends validity of FCRA registered NGOs till June 30

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Union home ministry extends validity of FCRA registered NGOs till June 30

  • The Union home ministry extended till June 30 the validity of all FCRA registered NGOs whose licenses are expiring on March 31, in a relief to those whose renewal applications are still under consideration.

The Foreign Contribution (Regulation) Act (FCRA):

  • Passed in 1976 during India's Emergency, the FCRA was a response to worries about foreign influence.
  • The law aimed to control foreign donations to ensure organizations receiving them operated in line with India's democratic values.
  • Strengthened in 2010 and again in 2020, the FCRA gives the government more control over how NGOs handle foreign funds.
  • The Ministry of Home Affairs (MHA) enforces the law and can block donations used against India's national interests.

Key Points of the FCRA:

  • Registration: NGOs that want foreign donations must register with the FCRA and open a special account at the State Bank of India in Delhi.
  • The funds can only be used for approved purposes. Annual reports are required, and transfers to other NGOs are not allowed.
  • Restrictions: The FCRA prohibits receiving foreign funds for people in certain professions (like journalists or politicians) and organizations with political aims.
  • Registration Process: NGOs apply online with documents.
  • Those with cultural, economic, educational, religious, or social programs can qualify. The MHA checks backgrounds and approves/denies applications within 90 days. Registration lasts 5 years and needs renewal.
  • Cancellation: The MHA can cancel registration for inactivity, misuse of funds, or if deemed necessary for public interest.
  • The NGO can defend itself before cancellation, and a court challenge is possible. A cancelled NGO cannot re-register for 3 years.
  • Suspensions and freezing of funds are also possible during investigations.

Prelims Takeaway

  • NGO
  • FCRA

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