Amended FCRA comes into effect from Tuesday

Union Minister of State for Home Nityanand Rai had said in Parliament that the legislation was not against any NGO and is an effort to maintain transparency.
Ministry of home Affairs

New Delhi, Sep 29 : The amended Foreign Contribution (Regulation) Act, which makes it mandatory for office-bearers of NGOs to furnish their Aadhaar numbers for registration, came into force on Tuesday, according to a Home Ministry notification.

The Foreign Contribution (Regulation) Amendment Act, 2020, was passed by Parliament during the recently concluded Monsoon Session.

“In exercise of the powers conferred by sub-section (2) of section 1 of the Foreign Contribution (Regulation) Amendment Act, 2020 (33 of 2020), the central government hereby appoints the 29th day of September, 2020, as the date on which the provisions of the said Act, shall come into force,” the notification said.

As per the amended law, furnishing of Aadhaar numbers by office-bearers of NGOs has become mandatory for registration. The Act also provides for reduction in administrative expenses of any NGO receiving foreign funding, from 50 per cent to 20 per cent of annual funds to ensure spending on their main objectives.

Among other provisions, the law proposes to enable the Centre to allow an NGO or association to surrender its FCRA certificate.

Union Minister of State for Home Nityanand Rai had said in Parliament that the legislation was not against any NGO and is an effort to maintain transparency.

This amendment is in the interest of good NGOs which want to do good work in the country, he had said.

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