Introducing the bill, Rai said: “There would be no discrimination. The permission previously granted to religious institutions for foreign contributions under the Foreign Contributions (Regulation) Act 2010 will continue. But these institutions must not deviate. of its objective and not be a threat to the security of the country. ” The bill proposes that no more than 20 percent of the total foreign funds received can be spent on administrative expenses. Currently, the limit is 50 percent. Congressional Manish Tewari opposed the bill and made a request to the government to relax the provisions of the FCRA.
Restrictions have also been placed on NGOs under the proposed amendment on how they can use foreign funding. The proposed amendment to the law says that NGOs cannot use more than 20 percent of their foreign contributions to cover administrative expenses. Currently, the limit is 50% to pay salaries or cover other administrative needs.
The amendments, if approved, will also prevent the transfer of foreign contributions from one association or person to another. The amended bill allows NGOs to receive foreign donations exclusively into a designated FCRA account to be opened at the State Bank of India in New Delhi or “as the Center will specify by notice.” However, entities can also open one or more accounts at other banks to hold or use foreign contribution received from the FCRA account at SBI, New Delhi, the draft says.
The purpose and reasons statement of the bill says that it is necessary to simplify the provisions of the FCRA by strengthening the compliance mechanism, improving transparency and accountability in the receipt and use of foreign contributions worth billions of rupees. every year and facilitating NGOs or associations that work for the welfare of society.
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