{"id":13506,"date":"2020-10-01T17:58:40","date_gmt":"2020-10-01T12:28:40","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=13506"},"modified":"2020-10-01T17:58:45","modified_gmt":"2020-10-01T12:28:45","slug":"foreign-contribution-regulation-amendment-bill-2020","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/foreign-contribution-regulation-amendment-bill-2020\/","title":{"rendered":"Foreign Contribution Regulation Amendment Bill 2020: A Guide"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The term \u201c<strong><em>Foreign Contribution Regulation\nAmendment Bill 2020<\/em><\/strong>\u201d denotes a bill which was presented by the <strong><em>Ministry\nof Home Affairs<\/em><\/strong> and was passed unanimously by the <strong><em>Rajya Sabha<\/em><\/strong> on <strong><em>23.09.2020<\/em><\/strong>.\n<\/p>\n\n\n\n<p>Further, the said bill was introduced in the <strong><em>Lok Sabha<\/em><\/strong> on <strong><em>20.09.2020<\/em><\/strong> and was passed to the <strong><em>Rajya Sabha<\/em><\/strong> on <strong><em>21.09.2020<\/em><\/strong>. Furthermore, this bill <strong><em>amends<\/em><\/strong> the <strong><em>Foreign Contribution (Regulation) Act 2010<\/em><\/strong><a href=\"https:\/\/fcraonline.nic.in\/home\/PDF_Doc\/FC-RegulationAct-2010-C.pdf\">[1]<\/a> .<\/p>\n\n\n\n<p>In this blog, we will discuss in detail\nabout the <strong><em>Foreign Contribution Regulation Amendment Bill 2020<\/em><\/strong> and the <strong><em>reason<\/em><\/strong>\nbehind the amendment.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3b77f14b6fd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3b77f14b6fd\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/foreign-contribution-regulation-amendment-bill-2020\/#Overview_of_Foreign_Contribution_Regulation_Act_2010\" title=\"Overview of Foreign Contribution\n(Regulation) Act 2010\">Overview of Foreign Contribution\n(Regulation) Act 2010<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/foreign-contribution-regulation-amendment-bill-2020\/#Purpose_of_Amending_FCRA_2010\" title=\"Purpose of Amending FCRA 2010\">Purpose of Amending FCRA 2010<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/foreign-contribution-regulation-amendment-bill-2020\/#Aim_of_Foreign_Contribution_Regulation_Amendment_Bill_2020\" title=\"Aim of Foreign Contribution\nRegulation Amendment Bill 2020\">Aim of Foreign Contribution\nRegulation Amendment Bill 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/foreign-contribution-regulation-amendment-bill-2020\/#Key_Provisions_of_the_FCRA_Bill_2020\" title=\"Key Provisions of the FCRA Bill 2020\">Key Provisions of the FCRA Bill 2020<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/foreign-contribution-regulation-amendment-bill-2020\/#Restrictions_on_Accepting_Foreign_Contributions\" title=\"Restrictions on Accepting Foreign\nContributions\">Restrictions on Accepting Foreign\nContributions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/foreign-contribution-regulation-amendment-bill-2020\/#Transfer_of_Foreign_Contribution\" title=\"Transfer of Foreign Contribution\">Transfer of Foreign Contribution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/learning\/foreign-contribution-regulation-amendment-bill-2020\/#Aadhar_for_Registration\" title=\"Aadhar for Registration\">Aadhar for Registration<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/learning\/foreign-contribution-regulation-amendment-bill-2020\/#FCRA_Account\" title=\"FCRA Account\">FCRA Account<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/learning\/foreign-contribution-regulation-amendment-bill-2020\/#Prohibition_in_Utilizing_Foreign_Contribution\" title=\"Prohibition in Utilizing Foreign Contribution\">Prohibition in Utilizing Foreign Contribution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/learning\/foreign-contribution-regulation-amendment-bill-2020\/#Reduction_in_the_Use_of_Foreign_Contribution\" title=\"Reduction in the Use of Foreign Contribution \">Reduction in the Use of Foreign Contribution <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/learning\/foreign-contribution-regulation-amendment-bill-2020\/#Surrender_of_Registration_Certificate\" title=\"Surrender of Registration Certificate\">Surrender of Registration Certificate<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/learning\/foreign-contribution-regulation-amendment-bill-2020\/#Impact_of_the_Foreign_Contribution_Regulation_Amendment_Bill_2020\" title=\"Impact of the Foreign Contribution\nRegulation Amendment Bill 2020\">Impact of the Foreign Contribution\nRegulation Amendment Bill 2020<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/learning\/foreign-contribution-regulation-amendment-bill-2020\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overview_of_Foreign_Contribution_Regulation_Act_2010\"><\/span>Overview of Foreign Contribution\n(Regulation) Act 2010<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term \u201c<strong><em>Foreign Contribution (Regulation)\nAct 2010<\/em><\/strong>\u201d denotes an Act that confirms that <strong><em>funds<\/em><\/strong> or the <strong><em>amount\nreceived<\/em><\/strong> by the domestic registered, such as <strong><em>Trusts<\/em><\/strong>, <strong><em>Institutions<\/em><\/strong>,\n<strong><em>Societies<\/em><\/strong>,\n<strong><em>NGOs<\/em><\/strong>,\nand <strong><em>Associations<\/em><\/strong>,\nmust be used for the <strong><em>objectives specified<\/em><\/strong>.<\/p>\n\n\n\n<p>Further, this act was implemented by the <strong><em>Ministry\nof Home Affairs,<\/em><\/strong> and as per this act, an organisation <strong><em>needs\nto register<\/em><\/strong> themselves in <strong><em>every 5 years<\/em><\/strong>.<\/p>\n\n\n\n<p>Furthermore, according to this act\nindividuals are allowed to <strong><em>accept till Rs 25000<\/em><\/strong> as <strong><em>foreign\ncontributions<\/em><\/strong> that too <strong><em>without the permission<\/em><\/strong> of the <strong><em>Ministry\nof Home Affairs.<\/em><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Purpose_of_Amending_FCRA_2010\"><\/span>Purpose of Amending FCRA 2010<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em>The reasons behind the amendment of FCRA 2010 are as follows:<\/em><\/p>\n\n\n\n<ol><li>The\namount of the inflow of the \u201c<strong><em>Foreign Contribution<\/em><\/strong>\u201d was almost <strong><em>doubled<\/em><\/strong>\nin the year <strong><em>2019 as compared to the year 2010<\/em><\/strong>. However, it shall be\nrelevant to note that many of the <strong><em>foreign institutions<\/em><\/strong> had not\nutilized the <strong><em>amount received<\/em><\/strong> for the objective for which they were\nregistered under the <strong><em>Foreign Contribution (Regulation) Act 2010;<\/em><\/strong><\/li><li>Recently,\nthe license of <strong><em>6 NGOs<\/em><\/strong> was <strong><em>suspended<\/em><\/strong> by the <strong><em>Union\nHome Ministry<\/em><\/strong>, as they have used the funds received as <strong><em>Foreign\nContribution<\/em><\/strong> for \u201c<strong><em>Religious Conversions<\/em><\/strong>\u201d;<\/li><li>Many\nNGOs were not complying to the <strong><em>Statutory Compliances<\/em><\/strong>, such as the <strong><em>Maintenance\nof Proper Accounts<\/em><\/strong> and <strong><em>Submission of Annual Returns<\/em><\/strong>;<\/li><li>The\nsituations mentioned above tend to have adversely affected the Internal\nSecurity of the country.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Aim_of_Foreign_Contribution_Regulation_Amendment_Bill_2020\"><\/span>Aim of Foreign Contribution\nRegulation Amendment Bill 2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"1000\" height=\"378\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/10\/Aim-of-Foreign-Contribution-Regulation-Amendment-Bill-2020-1.png\" alt=\"Aim of Foreign Contribution Regulation Amendment Bill 2020\" class=\"wp-image-13511\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/10\/Aim-of-Foreign-Contribution-Regulation-Amendment-Bill-2020-1.png 1000w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/10\/Aim-of-Foreign-Contribution-Regulation-Amendment-Bill-2020-1-300x113.png 300w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/10\/Aim-of-Foreign-Contribution-Regulation-Amendment-Bill-2020-1-768x290.png 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/figure><\/div>\n\n\n\n<p>The <strong><em>main aims<\/em><\/strong> of the <strong><em>newly\nimplemented FCRA Bill<\/em><\/strong> are as follows:<\/p>\n\n\n\n<ol><li>To\n<strong><em>improve<\/em><\/strong>\n<strong><em>Transparency<\/em><\/strong>\nand <strong><em>Accountability\n<\/em><\/strong>in the <strong><em>receipt<\/em><\/strong> and <strong><em>utilization<\/em><\/strong> of \u201cForeign\nContributions\u201d;<\/li><li>&nbsp;To <strong><em>facilitate<\/em><\/strong> and <strong><em>boost <\/em><\/strong>the Non-governmental\nOrganisations and Associations, who are working for the society and public\nwelfare;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Provisions_of_the_FCRA_Bill_2020\"><\/span>Key Provisions of the FCRA Bill 2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"1000\" height=\"577\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/10\/Key-Provisions-of-the-FCRA-Bill-2020.png\" alt=\"Key Provisions of the FCRA Bill 2020\" class=\"wp-image-13508\" srcset=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/10\/Key-Provisions-of-the-FCRA-Bill-2020.png 1000w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/10\/Key-Provisions-of-the-FCRA-Bill-2020-300x173.png 300w, https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2020\/10\/Key-Provisions-of-the-FCRA-Bill-2020-768x443.png 768w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/figure><\/div>\n\n\n\n<p>The <strong><em>Key Provisions of the FCRA Bill 2020<\/em><\/strong>\nare as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Restrictions_on_Accepting_Foreign_Contributions\"><\/span>Restrictions on Accepting Foreign\nContributions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As per the <strong><em>FCRA Bill 2020<\/em><\/strong>, <strong><em>public\nservants<\/em><\/strong> are <strong><em>not allowed<\/em><\/strong> to <strong><em>accept foreign contribution<\/em><\/strong>.\nFurther, the term \u201cPublic Servant\u201d means any person who is in government\nservice or is being remunerated by the government for performing public duty.<\/p>\n\n\n\n<p>Moreover, this <strong><em>amendment<\/em><\/strong> was made in <strong><em>addition\nto the list of persons<\/em><\/strong> who are <strong><em>not eligible<\/em><\/strong> to <strong><em>accept foreign contribution<\/em><\/strong>\nas per <strong><em>FCRA 2010<\/em><\/strong>. The term \u201c<strong><em>list of persons<\/em><\/strong>\u201d includes the\nfollowing:<\/p>\n\n\n\n<ol><li>Election\nCandidate;<\/li><li>Editor\nof a Newspaper;<\/li><li>Publisher\nof a Newspaper;<\/li><li>Judges;<\/li><li>Government\nServants;<\/li><li>Member\nof any Legislature;<\/li><li>Political\nParties, etc.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Transfer_of_Foreign_Contribution\"><\/span>Transfer of Foreign Contribution<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As per the <strong><em>Foreign Contribution Regulation\nAmendment Bill 2020, <\/em><\/strong>a registered business entity is <strong><em>not\nallowed<\/em><\/strong> to <strong><em>transfer<\/em><\/strong> the amount received as <strong><em>Foreign Contribution<\/em><\/strong> to\nany <strong><em>other\nperson<\/em><\/strong>. Further, the term \u201c<strong><em>person<\/em><\/strong>\u201d includes the following:<\/p>\n\n\n\n<ol><li>Individual;<\/li><li>Association;\nor<\/li><li>Registered\nCompany;<\/li><\/ol>\n\n\n\n<p>However, it shall be pertinent to state\nthat as per <strong><em>FCRA 2010<\/em><\/strong>, a <strong><em>registered business entity<\/em><\/strong> was <strong><em>allowed<\/em><\/strong>\nto <strong><em>transfer\nforeign contribution<\/em><\/strong> to the <strong><em>person eligible <\/em><\/strong>to accept it. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Aadhar_for_Registration\"><\/span>Aadhar for Registration<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As per the <strong><em>FCRA Bill 2020<\/em><\/strong>, it is now\n<strong><em>mandatory<\/em><\/strong>\nfor <strong><em>every\noffice bearer<\/em><\/strong>, <strong><em>director<\/em><\/strong>, or <strong><em>key Functionaries<\/em><\/strong> of the <strong><em>person\nqualified<\/em><\/strong> to receive <strong><em>Foreign Contribution<\/em><\/strong> to have <strong><em>Aadhar\nNumber<\/em><\/strong> as an <strong><em>Identification Document<\/em><\/strong>.<\/p>\n\n\n\n<p>However, in the case of a <strong><em>Foreigner<\/em><\/strong>,\na <strong><em>copy<\/em><\/strong>\nof either of the following is required as an <strong><em>Identification Docum<\/em><\/strong>ent:<\/p>\n\n\n\n<ol><li>Overseas\nCitizen of India Card; or<\/li><li>Passport;<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FCRA_Account\"><\/span>FCRA Account<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As per the <strong><em>Foreign Contribution Regulation\nAmendment Bill 2020,<\/em><\/strong> now the registered entities can <strong><em>receive\nforeign contributions<\/em><\/strong> only in the account designated as \u201c<strong><em>FCRA\nAccount<\/em><\/strong>\u201d by the bank. Such a bank must work as a <strong><em>branch<\/em><\/strong> of the <strong><em>State\nBank of India<\/em><\/strong>, <strong><em>New Delhi<\/em><\/strong>. <\/p>\n\n\n\n<p>Moreover, the entity is <strong><em>not\nallowed<\/em><\/strong> to <strong><em>deposit any amount<\/em><\/strong> <strong><em>other than Foreign Contribution<\/em><\/strong> in\nthis account. <\/p>\n\n\n\n<p>However, a person can <strong><em>open an FCRA Account<\/em><\/strong> in any <strong><em>other scheduled bank of its choice for maintaining and utilizing the amount received as a <\/em><\/strong>contribution.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Prohibition_in_Utilizing_Foreign_Contribution\"><\/span><strong>Prohibition in Utilizing Foreign Contribution<\/strong><strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As per the <strong><em>Foreign Contribution Regulation\nAmendment Bill 2020, <\/em><\/strong>the government has <strong><em>restricted <\/em><\/strong>the <strong><em>usage<\/em><\/strong>\nof <strong><em>un-utilized\nforeign contribution<\/em><\/strong>. &nbsp;However, the\nsame will be done only if after the <strong><em>inquiry conducted<\/em><\/strong> by the <strong><em>Government<\/em><\/strong>,\nit is clear that the person has <strong><em>violated<\/em><\/strong> the provisions of the <strong><em>FCRA\nAct<\/em><\/strong>. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reduction_in_the_Use_of_Foreign_Contribution\"><\/span><strong>Reduction in the Use of Foreign Contribution <\/strong><strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As per the <strong><em>FCRA Bill 2020, <\/em><\/strong>now the <strong><em>registered\nbusiness entities<\/em><\/strong> <strong><em>cannot use<\/em><\/strong> <strong><em>more than 20% <\/em><\/strong>of the <strong><em>Total\nForeign Contribution<\/em><\/strong> received for \u201c<strong><em>Administrative Purposes<\/em><\/strong>\u201d.<\/p>\n\n\n\n<p>However, it will be noteworthy to note\nthat such an amount was <strong><em>50% in FCRA 2010<\/em><\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Surrender_of_Registration_Certificate\"><\/span><strong>Surrender of Registration Certificate<\/strong><strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As per the <strong><em>Foreign Contribution Regulation\nAmendment Bill 2020, <\/em><\/strong>the <strong><em>Central Government <\/em><\/strong>has now <strong><em>allowed\nthe registered person<\/em><\/strong> to <strong><em>surrender<\/em><\/strong> its \u201c<strong><em>Registration Certificate<\/em><\/strong>\u201d.<\/p>\n\n\n\n<p>Further, the same will be done only in the\nevents as follows:<\/p>\n\n\n\n<ol><li>The\n<strong><em>Inquiry\nconducted<\/em><\/strong> by the <strong><em>Government<\/em><\/strong> made this clear that the\nperson has <strong><em>not violated<\/em><\/strong> the provisions of the <strong><em>FCRA Act 2010; <\/em><\/strong>and <\/li><li>The\n<strong><em>Management\n<\/em><\/strong>of the <strong><em>Foreign Contribution <\/em><\/strong>has been duly <strong><em>vested <\/em><\/strong>with the authority\nprescribed by the <strong><em>Central Government<\/em><\/strong>.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_of_the_Foreign_Contribution_Regulation_Amendment_Bill_2020\"><\/span>Impact of the Foreign Contribution\nRegulation Amendment Bill 2020<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>The impact of the Foreign Contribution Regulation Amendment Bill 2020 can be summarised as:<\/strong><\/p>\n\n\n\n<ol><li>The\n<strong><em>Amendment\nBill<\/em><\/strong> will impact the \u201c<strong><em>Livelihood of the Worker<\/em><\/strong>\u201d <strong><em>associated<\/em><\/strong>\nwith the <strong><em>small level NGOs<\/em><\/strong> (Non-Governmental Organisations), and may lead\nto the \u201c<strong><em>End of the Entire Social Sector<\/em><\/strong>\u201d as well, as the limits on \u201c<strong><em>Administrative\nExpenses<\/em><\/strong>\u201d will make it <strong><em>hard to perform<\/em><\/strong> even for the large\nNGOs;<\/li><li>This\nBill will adversely impact the \u201c<strong><em>Collaborative Research<\/em><\/strong>\u201d in <strong><em>significant\ndomains<\/em><\/strong> in India, as the <strong><em>organisations<\/em><\/strong> receiving <strong><em>contribution<\/em><\/strong>\nwill now be <strong><em>unable to transfer<\/em><\/strong> the same to the <strong><em>small NGOs operating<\/em><\/strong> at\nthe <strong><em>grassroots\nlevel<\/em><\/strong>;<\/li><li>Through\nthis bill, the <strong><em>Central Government<\/em><\/strong> aims to <strong><em>control <\/em><\/strong>and <strong><em>regulate<\/em><\/strong> all the <strong><em>NGOs<\/em><\/strong>,\nwhich are engaged in \u201c<strong><em>Dubious<\/em><\/strong>\u201d and \u201c<strong><em>Fraudulent<\/em><\/strong>\u201d activities.\nHowever, it shall be relevant to note that by this bill, the <strong><em>government\nfails to recognize the diversity of NGOs<\/em><\/strong>, which comprise of <strong><em>reputed\norganisations<\/em><\/strong>, that are <strong><em>recognized<\/em><\/strong> at a <strong><em>global platform<\/em><\/strong>, will <strong><em>affect<\/em><\/strong>their <strong><em>competitiveness<\/em><\/strong> and <strong><em>creativity<\/em><\/strong>;<\/li><li>The\n<strong><em>Foreign\nContribution Regulation Amendment Bill 2020 <\/em><\/strong>is <strong><em>Incompatible<\/em><\/strong> with the\nprovisions of <strong><em>International Law<\/em><\/strong>. The same can be proved by the statements as\nfollows:<\/li><li>As\nper the <strong><em>UNHRC<\/em><\/strong> (<strong><em>United Nations Human Rights Council<\/em><\/strong>)\nresolution on \u201c<strong><em>Protecting Human Rights<\/em><\/strong>\u201d, no law shall \u201c<strong><em>Criminalize<\/em><\/strong>\u201d or \u201c<strong><em>Delegitimize<\/em><\/strong>\u201d\nthe activities in defense of \u201c<strong><em>Human Rights<\/em><\/strong>\u201d on account of the \u201c<strong><em>Origin\nof Funding<\/em><\/strong>\u201d;<\/li><li>Further,\nthis <strong><em>Amendment\nBill<\/em><\/strong> <strong><em>fails to adhere to<\/em><\/strong> the India\u2019s \u201c<em>International Legal Obligations<\/em>\u201d and \u201c<strong><em>Constitutional Provisions<\/em><\/strong>\u201d\nwith regard to <strong><em>protection<\/em><\/strong> of the <strong><em>Right to Freedom of Expression<\/em><\/strong>,<strong><em>\nAssociations, <\/em><\/strong>and <strong><em>Freedom of Assembly<\/em><\/strong>;<\/li><li>Lastly,\nas per the <strong><em>Foreign Contribution Regulation Amendment Bill 2020, <\/em><\/strong>the <strong><em>NGOs<\/em><\/strong>\nthat are <strong><em>receiving foreign contributions<\/em><\/strong> are <strong><em>considered guilty unless proven\notherwise<\/em><\/strong>;<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In\na nutshell, the\n<strong><em>Foreign Contribution\nRegulation Amendment Bill 2020 <\/em><\/strong>significantly amends the\nearlier <strong><em>Foreign Contribution (Regulation) Act 2010<\/em><\/strong>, which imposed <strong><em>vague<\/em><\/strong>\nand <strong><em>ambiguous\n<\/em><\/strong>restrictions on <strong><em>civil society<\/em><\/strong> as well. <\/p>\n\n\n\n<p>Further, <strong><em>FCRA\n2020<\/em><\/strong> again provides for <strong><em>overly broad rules<\/em><\/strong> and <strong><em>measures<\/em><\/strong>\nwhich would definitely <strong><em>restrict the access<\/em><\/strong> to <strong><em>foreign\nfunding<\/em><\/strong> specifically for <strong><em>public servants<\/em><\/strong> and <strong><em>smaller\nnon-governmental organisations<\/em><\/strong>. <\/p>\n\n\n\n<p>Furthermore, this <strong><em>amendment\nbill<\/em><\/strong> adds onerous \u201c<strong><em>governmental oversight<\/em><\/strong>\u201d, \u201c<strong><em>additional\nrules and regulations<\/em><\/strong>\u201d, \u201c<strong><em>certification processes<\/em><\/strong>\u201d, and \u201c<strong><em>operational\nrequirements<\/em><\/strong>\u201d, while concurrently reducing the limit of \u201c<strong><em>administrative\nexpenditure<\/em><\/strong>\u201d that can be utilized to the <strong><em>foreign contributions<\/em><\/strong> to <strong><em>20%\nfrom the previous 50%.<\/em><\/strong><\/p>\n\n\n\n<p>For any further details regarding <strong><em><a href=\"https:\/\/swaritadvisors.com\/fcra-registration\">FCRA Registration<\/a><\/em><\/strong>, visit <strong><em>Swarit Advisors<\/em><\/strong>.<\/p>\n\n\n\n<p><b>Read, Also:<\/b> <mark><a href=\"https:\/\/swaritadvisors.com\/learning\/how-fdi-helps-private-limited-companies\/\">How FDI helps Private Limited Companies<\/a><\/mark>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The term \u201cForeign Contribution Regulation Amendment Bill 2020\u201d denotes a bill which was presented by the Ministry of Home Affairs and was passed unanimously by the Rajya Sabha on 23.09.2020. Further, the said bill was introduced in the Lok Sabha on 20.09.2020 and was passed to the Rajya Sabha on 21.09.2020. Furthermore, this bill amends [&hellip;]<\/p>\n","protected":false},"author":17,"featured_media":13507,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[669],"tags":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/13506"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=13506"}],"version-history":[{"count":4,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/13506\/revisions"}],"predecessor-version":[{"id":13519,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/13506\/revisions\/13519"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/13507"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=13506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=13506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=13506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}