Foreign contribution Act passed in Lok Sabha

The Lok Sabha passed a Bill to amend the Foreign Contribution (Regulation) Act, which seeks to make it mandatory for office bearers of any nongovernmental organisation to provide their Aadhaar numbers at the time of registration and also brings various other changes.

The Foreign Contribution (Regulation) Amendment Bill, 2020, was passed by the Lok Sabha, even as civil society organisations asked the government to stop looking suspiciously at them.

Amid concerns raised by various Opposition members about the Bill, Minister of State for Home Nityanand Rai said the legislation was not against any religion or NGO.

Replying to the discussion on the Bill, the minister asserted that legislation is necessary for an Atmanirbhar Bharat (self-reliant India) and that it will help curb misuse of foreign funds.

The Bill seeks to make it mandatory for office bearers of any non-governmental organisation (NGO) to provide their Aadhaar numbers at the time of registration.

Among other provisions, the Bill proposes to enable the Centre to allow an NGO or association to surrender its FCRA certificate, capping administrative expenses at 20 per cent, from the current 50 per cent. It also seeks to mandate civil society organisations to have SBI accounts at a Delhi branch (to be notified later) to receive foreign funds, and prohibits one Fcra-registered society to transfer funds to another which is also recognised by the Act.