The Ministry of Home Affairs (MHA) recently issued a gazetted notification amending the Foreign Contribution Regulation Act (FCRA) rules. These modifications have a substantial influence on non-governmental organizations (NGOs) holding FCRA licenses as well as individuals who receive foreign contributions.
FCRA Amendment Rules, 2023
The Ministry of Home Affairs used Section 48 of the FCRA in a notification to make the necessary regulation adjustments. These revisions are formally known as the "Foreign Contribution (Regulation) Amendment Rules, 2023," and they take effect upon publication in the Official Gazette.
Previous Relaxations
The MHA has previously altered foreign funding regulations, allowing for some flexibility. These changes made it possible for relatives to transfer larger quantities under the FCRA and extended the time window for organizations to notify the government about opening bank accounts for funds received under the'registration' or 'prior permission' category.
Beneficiaries Have Grown
The new laws significantly alter who can accept foreign contributions without being prosecuted. Notably, political parties, legislators, election candidates, judges, government employees, journalists, and media outlets, who were previously forbidden from accepting foreign contributions, would no longer face prosecution if they do so from relatives living abroad. Importantly, recipients would have up to 90 days to notify the government of their donations.
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