Home Minister Amit Shah is all set to introduce the the Foreign Contribution (Regulation) Act amendment bill in the Lok Sabha today (20 September).
As per a Times of India report, under this FCRA amendment the NGOs cannot use more than 20 per cent of the foreign contributions to meet their administrative expenses like paying salaries. It also bars any public servant from receiving any foreign funds. The definition of public servants would be laid out as per the Section 21 of the IPC.
Until now the NGOs were permitted to utilise 50 per cent of their foreign funding to meet administrative expenses.
The bill states that there is a need to streamline FCRA provisions to enhance compliance and transparency over foreign funds worth crores which are sent to NGOs.
Under the amendment any new FCRA registration and renewal of FCRA licence will require the Aadhaar number of all office bearers or a copy of passport or OCI card in case of a foreigner.
Additionally, all the NGOs would be required to receive foreign donations in a designated FCRA account.
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