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TMI BlogFCRA Act & Rules – An IntroductionX X X X Extracts X X X X X X X X Extracts X X X X ..... FCRA Act & Rules – An Introduction X X X X Extracts X X X X X X X X Extracts X X X X ..... ividuals, associations, and companies. 🏛️ Objective of the FCRA Act & Rules * To ensure that foreign contributions do not affect: * Sovereignty and integrity of India * Public interest * National security * Electoral and democratic processes * To increase transparency and accountability in the use of foreign funds by NGOs and other entities. 📘 Key Provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the FCRA Act, 2010 1. Registration & Prior Permission * Any NGO, trust, or other eligible entity must register under FCRA or obtain prior permission before accepting foreign funds. 2. Designated FCRA Bank Account * Foreign contributions must be received only in a designated bank account, currently mandated to be with SBI's New Delhi branch. 3. Eligible Recipients * Includes NGOs, charita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble organizations, educational and cultural bodies. * Prohibits certain individuals and entities from receiving foreign contributions (e.g., election candidates, judges, government servants, media houses). 4. Utilization & Reporting * Foreign funds must be used only for the stated purpose and not for speculative activities. * Annual returns (Form FC-4) must be filed electronically within 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... months of the end of the financial year. 📘 Key FCRA Rules, 2011 (with Amendments) ✅ Highlights: * Form FC-3A/FC-3B: Application for registration or prior permission * Form FC-4: Annual return filing format * Declaration of foreign contributions received must be made public on the entity's website. * Requirement to renew FCRA registration every 5 years. 🔁 Important ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Amendments (esp. 2020 onwards): * Restriction on sub-granting foreign funds to other NGOs. * Mandatory Aadhaar for key functionaries. * Reduced administrative expense cap to 20% of foreign funds received (earlier 50%). * Suspension of FCRA license if the entity fails to comply. ❌ Prohibited Recipients under FCRA * Political parties * Government servants * Members of legislatu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re * Judges * Journalists of registered newspapers/media (in certain cases) 🛑 Penalties for Violation * Suspension or cancellation of registration * Seizure of foreign contributions * Fines or imprisonment for severe violations 📑 Conclusion The FCRA Act and Rules are designed to regulate foreign donations to ensure they are used for legitimate and transparent purposes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that align with India's national interest. All entities receiving such funds must comply strictly with the registration, reporting, and utilization norms outlined in the law.
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