Foreign Contribution Regulation Act (FCRA)

Foreign Contribution Regulation Act (FCRA): The Central Bureau of Investigation (CBI) recently conducted a raid at the residence of a senior Aam Aadmi Party (AAP) leader in connection with alleged violations of the Foreign Contribution Regulation Act (FCRA).

• About FCRA: Introduced in 1976 during Emergency to prevent foreign influence on internal affairs to regulate and oversee flow of foreign funds into India.
• FCRA Amendment Act, 2020:

o Transfer Ban: No transfer of foreign funds to individuals, associations, companies.

o Aadhaar Mandatory: Aadhaar/passport/OCI card required for office bearers.

o Designated Bank Account: Must receive funds via SBI branch in New Delhi.

o Admin Expenses Cut: Limit reduced from 50% to 20%.

o Renewal Checks: Government can verify authenticity before renewing licence.

o Suspension Extension: Can extend suspension beyond 180 days by another 180.

o Surrender Allowed: Certificate can be surrendered with government approval.

o Fund Restriction: Unutilised funds can be restricted post-inquiry.

• FCRA Rules 2022: Prevents foreign funds/hospitality harming national security.

o Higher Limit: Indians can receive up to ₹10 lakh/year from relatives abroad (up from ₹1 lakh) without informing govt.