Foreign Contribution Regulation (Amendment) Bill 2020 was passed by the parliament to amend the FCRA act, 2010 on September 23.
The bill is aimed at amending the provisions of the FCRA Act to streamline the funding procedure.
The bill aims to increase transparency and accountability.
It also aims to strengthen the compliance mechanism in the utilisation of foreign contribution.
Features of the Bill
It seeks to prohibit ‘public servants’ from receiving any foreign funding.
It proposes to reduce the use of foreign funds to meet administrative costs by NGOs from the existing 50 per cent to 20 per cent.
It seeks to “prohibit any transfer of foreign contribution to any association/ person”.
It proposes to make Aadhaar cards a mandatory identification document for all office-bearers, directors and other key functionaries of NGOs or associations eligible to receive foreign donations.