Centre to amend the Foreign Contribution (Regulation) Act
GS2Polity · Governance · IR· Transparency, accountability & RTI· Prelims + Mains·
Why in news
The Union government proposed amendments to the Foreign Contribution (Regulation) Act (FCRA) to enhance accountability and streamline the management of assets derived from foreign funds.
Background
The proposed amendments include appointing a designated authority to manage assets of suspended or cancelled NGOs. It also expands the definition of 'key functionary' and introduces liability for FCRA offenses unless lack of knowledge or due diligence is proven.
Facts for Prelims
- Act / BillFCRA: Foreign Contribution (Regulation) Act governs the receipt and usage of foreign funds by Indian entities.
- FactProposed amendment: Key functionaries are liable for FCRA offenses unless they prove lack of knowledge or due diligence.
- FactProposed amendment: A designated authority will be appointed to manage assets created from foreign funds by suspended or cancelled NGOs.
For Mains
Q. Discuss how the proposed amendments to the FCRA aim to balance the need for civil society funding with the necessity of national security and financial transparency.
Dimensions to cover in your answer
- Accountability gap: Expanding 'key functionary' definitions to ensure personal liability for organizational non-compliance
- Asset management: Centralized oversight of abandoned NGO assets to prevent diversion of foreign funds
- Due diligence standards: Shifting the burden of proof to functionaries to demonstrate proactive compliance
Keywords: transparency · regulatory framework · accountability · civil society · foreign funding · compliance
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