FCRA Registration

Subject – Governance

Context – Nearly 6,000 entities, including Jamia Millia Islamia and Oxfam India, lose FCRA licence

Concept –

How the FCRA registration is granted?

FCRA registration is granted to associations for a period of five years. Before expiry of registration, NGOs are supposed to apply for renewal of registration if they wish to continue receiving foreign funding.
Even after an application is made, the Home Ministry reserves the right to reject the application in case it finds the NGO concerned violating FCRA.
The registration is mandatory for associations and NGOs to receive foreign funds.

What is Foreign Contribution (Regulation) Act (FCRA)?

Foreign funding of persons in India is regulated under FCRA Act and is implemented by the Ministry of Home Affairs.
The Act ensures that the recipients of foreign contributions adhere to the stated purpose for which such contribution has been obtained.
Under the Act, organisations are required to register/renew themselves every five years.
Registered NGOs can receive foreign contributions for five purposes — social, educational, religious, economic and cultural.

Prior Reference Category under the Act

It implies that to donate to such an NGO, a foreign donor has to take prior clearance from the Ministry of Home Affairs.