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September 22, 2020

9 Changes in FCRA after Foreign Contributions Amendment Bill 2020

9 Changes in FCRA after Foreign Contributions Amendment Bill 2020

The Parliament has approved few changes via Foreign Contributions Amendment Bill 2020 to the FCRA regulation in India. Following is the comparison

Sr. No.SectionBefore the Foreign Contributions Amendment  Bill  2020After Foreign Contributions Amendment Bill 2020
1.Section 3Foreign contributions can’t be accepted by Judge, employee of government companyForeign contributions can’t be accepted by “Public servants”, , Judge, employee of government company  

Public servants means : The competent authority, every arbitrator and every officer empowered by the Central Government or the competent authority, while exercising any power or performing any duty under this Act, shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code
2.Section 7NGOs can transfer funds to other FCRA licensed NGOs freely or to other NGOs with government permission.NGOs cannot transfer funds to other FCRA licensed NGOs freely or to other NGOs with government permission.
3.Section 8NGOs cannot use 50% of funds in Administrative expensesNGOs cannot use 20% of funds in Administrative expenses ( Expenses of Staff and Office General Expenses)

Sr. No.SectionBefore the Foreign Contributions Amendment  Bill  2020After Foreign Contributions Amendment  Bill  2020
4.Section 11Person unregistered under FCRA and guilty of FCRA 1976 can get funds with government permissionIn New rules if a person breaks any rule under this act he can’t receive or use any funds irrespective of government approval
5.Section 12For licensing make application to government with feesOpen FCRA account, Submit Aadhar card of all office bearers or passports/OCI card of all Trustee of NGO
6.Section 13Government may suspend license for 180 daysGovernment may suspend license for 180 days or further such period of 180 days.
Sr. No.SectionBefore the Foreign Contributions Amendment  Bill  2020After Foreign Contributions Amendment  Bill  2020
7.Section 14Government can cancel FCRA license.Government can cancel license or person can “surrender” license. Assets will go to authority.
8.Section 16Renewal of license in 6 months.Government can initiate inquiry before renewing license.
9.Section 17Receive funds in one bank. Can open more accounts to use funds. Bank should give details when demanded.Open FCRA Account at SBI New Delhi branch Can open other FCRA accounts to use funds. But funds will first come to SBI account. Bank should give details when demanded.

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