Q. Which Union Ministry issued the ‘Foreign Contribution (Regulation) Amendment Rules, 2023’?
[1] Ministry of Home Affairs
[2] Ministry of Finance
[3] Ministry of Corporate Affairs
[4] Ministry of External Affairs
[5] None
Answer: 1 – Ministry of Home Affairs
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Notes: Foreign Contribution (Regulation) Amendment Rules, 2023 was issued recently by the Ministry of Home Affairs. As per the revised guidelines, NGOs were mandated with FCRA license to submit details of movable and immovable assets created out of foreign contributions.
The Foreign Contribution (Regulation) Amendment Rules, 2023
The Foreign Contribution (Regulation) Amendment Rules, 2023 were notified by the Ministry of Home Affairs on September 25, 2023. The amendments are aimed at making the Foreign Contribution (Regulation) Act, 2010 more transparent and accountable.
The key amendments include:
- Requirement for NGOs to disclose details of movable and immovable assets created from foreign contributions: NGOs will now be required to disclose details of all movable and immovable assets created from foreign contributions in their annual returns.
- This will help to ensure that foreign contributions are used for their intended purposes and in compliance with the law.
- Expansion of the definition of “foreign contribution”: The definition of “foreign contribution” has been expanded to include any contribution made by a foreign source, irrespective of whether it is made directly or indirectly.
- This will help to prevent NGOs from circumventing the FCRA by receiving foreign contributions through intermediaries.
- Increase in the penalty for violations of the FCRA: The penalty for violations of the FCRA has been increased from ₹50,000 to ₹5 lakh.
- This will help to deter NGOs from violating the law.
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The amendments to the FCRA are a welcome step. They will help to ensure that foreign contributions are used for their intended purposes and in compliance with the law and they will also help to prevent NGOs from circumventing the law and from receiving foreign contributions through intermediaries.
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