Polity📖 3 min read

FCRA Bill Sent to Joint Parliamentary Committee for Review

Amidst parliamentary debate, the Foreign Contribution (Regulation) Amendment Bill has been referred to a Joint Parliamentary Committee for detailed examination.

Source: GNews Parliament
Summary of News

The Foreign Contribution (Regulation) Amendment Bill, 2020, was recently sent to a Joint Parliamentary Committee (JPC) for further scrutiny. This decision came after significant opposition from various political parties in the Parliament. The Bill seeks to amend the existing Foreign Contribution (Regulation) Act, 2010. Key provisions of the FCRA Bill include restricting public servants from receiving foreign contributions and reducing the administrative expenses that can be met with foreign funds from 50% to 20%. It also proposes to make Aadhaar mandatory for recipients of foreign contributions. The government stated that the FCRA Bill aims to enhance transparency and accountability in the use of foreign funds by organizations in India. The JPC will now review the FCRA Bill and submit its report to the Parliament.

Why It Matters

This development is important for competitive exams, especially for UPSC GS Paper II (Polity and Governance) and SSC General Awareness. Aspirants should understand the legislative process, the role of parliamentary committees, and the implications of the FCRA Bill on NGOs and civil society. The FCRA Bill's provisions reflect the government's stance on foreign funding and national security, making it a crucial topic for governance questions.

Key Points for Exam
  • The FCRA Bill, 2020, was referred to a Joint Parliamentary Committee (JPC).
  • The Bill proposes to amend the Foreign Contribution (Regulation) Act, 2010.
  • It seeks to reduce administrative expenses from 50% to 20% of foreign funds.
  • The Bill makes Aadhaar mandatory for key functionaries of recipient NGOs.
  • Public servants are restricted from receiving foreign contributions under the Bill.
  • The JPC will review the Bill and submit its report to Parliament.
Important Keywords Explained
Foreign Contribution (Regulation) Act (FCRA)act

The FCRA is an Indian law enacted in 2010 to regulate the acceptance and utilisation of foreign contributions or hospitality by individuals, associations, or companies. Its main objective is to ensure that foreign funds do not adversely affect national interest. The Act mandates registration for entities receiving foreign funds and specifies how these funds can be used.

Joint Parliamentary Committee (JPC)organization

A JPC is an ad-hoc committee formed by the Indian Parliament to investigate a particular matter or to scrutinize a Bill. It comprises members from both the Lok Sabha and the Rajya Sabha. JPCs are powerful bodies that can summon individuals and access documents. They play a crucial role in detailed examination of complex issues and legislative proposals.

Foreign Contributionconcept

Foreign contribution refers to the donation, delivery, or transfer of any article, currency, or security by a foreign source to any person or association in India. This includes gifts, grants, and remittances. The FCRA regulates these contributions to prevent their misuse and ensure they align with national interests.

Additional Facts & Context
1The original FCRA was enacted in 1976 during the Emergency period.
2Over 22,000 NGOs were registered under FCRA as of 2019.
3The Ministry of Home Affairs (MHA) is the nodal ministry for implementing the FCRA.
4The 2020 Bill proposes that foreign contributions can only be received in a designated FCRA account in the State Bank of India, Delhi.
Examiner's Tip

UPSC often asks about the powers and functions of parliamentary committees, especially JPCs. SSC exams may focus on the key provisions of important Acts like FCRA and the ministries responsible for them.

🧠
Memory Trick

Remember 'FCRA' as 'Foreign Cash Regulated Act' to recall its purpose of controlling foreign funds.

Frequently Asked Questions

What is the main purpose of the FCRA Bill 2020?

The main purpose of the FCRA Bill 2020 is to amend the existing Foreign Contribution (Regulation) Act, 2010, to enhance transparency and accountability in the use of foreign funds. It aims to regulate the acceptance and utilisation of foreign contributions more strictly to prevent their misuse and ensure national security.

What are the key changes proposed by the FCRA Bill 2020?

The FCRA Bill 2020 proposes several key changes. These include making Aadhaar mandatory for office bearers of NGOs receiving foreign funds, reducing the limit for administrative expenses from 50% to 20%, and prohibiting public servants from receiving foreign contributions. It also mandates receiving foreign funds only through a designated SBI account in Delhi.

Why was the FCRA Bill sent to a Joint Parliamentary Committee?

The FCRA Bill was sent to a Joint Parliamentary Committee (JPC) due to significant opposition and concerns raised by various political parties regarding its provisions. Referring it to a JPC allows for a more detailed examination, stakeholder consultation, and consensus-building before it is passed by Parliament.

Connected Concepts / Topics
Get direct updates on TelegramDaily current affairs + quiz + monthly PDFs — 100% freeJoin Channel →