Meaning of FCRA in India

Editorial Team
Updated
June 9, 2023

The Foreign Contribution Regulation Act (FCRA) is an important legislation enacted by the Government of India to regulate the acceptance and utilization of foreign contributions by individuals, associations, and non-governmental organizations (NGOs) in the country. The primary objective of FCRA is to ensure that foreign contributions are received and utilized in a transparent manner, without compromising the sovereignty and integrity of India.

Under FCRA, the term “foreign contribution” refers to any donation, delivery, or transfer of funds, including currency, securities, or other articles, made by a foreign source. It includes contributions from foreign individuals, associations, or organizations.

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The purpose of FCRA is to regulate and monitor the inflow and utilization of foreign contributions to prevent any undesirable activities, maintain transparency, and safeguard national interests. It ensures that foreign funds are utilized for legitimate and lawful purposes that promote social welfare, economic development, and charitable activities in India.

FAQ

Q1: Who can receive foreign contributions under FCRA in India?

Registered individuals, associations, and non-governmental organizations (NGOs) with a definite cultural, economic, educational, religious or social program can receive foreign contributions under FCRA.

Q2: What is considered a foreign source under FCRA?

A foreign source under FCRA can be an individual, an association, or an organization not based in India. It also includes multinational corporations and foreign governments.

Q3: What actions are prohibited under FCRA?

FCRA prohibits acceptance of foreign contributions for any activities detrimental to national interest, including those that affect the sovereignty and integrity of India.

Q4: What happens if one fails to comply with FCRA?

Non-compliance with FCRA can lead to severe penalties, including hefty fines, imprisonment, and cancellation of registration permitting foreign contributions.

Q5: How can an organization apply for FCRA registration?

An organization can apply for FCRA registration via the official website of the Ministry of Home Affairs, Government of India. They will need to fill out the form and provide the necessary documents.

Q6: Can an organization use foreign contributions for personal gain?

No. As per FCRA, foreign contributions should be used solely for the purpose for which they were received. Any misuse can lead to severe legal consequences.

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