Foreign Contribution (Regulation) Act (FCRA): overview and objectives
Foreign Contribution (Regulation) Act, 2010 as the legal framework for foreign funding of associations in India
- The law governs receipt and use of foreign contribution by eligible Indian associations through registration, prior permission, accounting, and disclosure rules.
- Foreign contribution may take the form of an article, currency, foreign security, or specified income arising from such contribution.
- The law aims to protect sovereignty, public order, and national security while allowing legitimate international cooperation in social and developmental work.
The Foreign Contribution (Regulation) Act, 2010 regulates how organisations in India receive and use foreign contributions. The law matters for UPSC because it sits at the intersection of governance, civil society regulation, and national security. The PIB backgrounder also clarifies a common misconception: the law does not impose a general ban on foreign donations.
What the Foreign Contribution (Regulation) Act does
The Foreign Contribution (Regulation) Act is administered by the Ministry of Home Affairs. It governs the acceptance and utilisation of foreign contribution received from a foreign source, as defined in the law.
UPSC can frame the Foreign Contribution (Regulation) Act, 2010 in terms of the balance between associational freedom and state regulation. A Mains answer can discuss why registration, banking trails, audits, and disclosure requirements are justified for transparency, while also examining compliance burdens and the scope for over-regulation of legitimate social work.
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