Foreign Contribution Regulation Act

1 min read
Foreign Contribution Regulation Act Blog Image


Recently, the Central government of India suspended the Foreign Contribution Regulation Act (FCRA) licence of the Centre for Policy Research (CPR)

About Foreign Contribution Regulation Act:

  • This act was enacted during the Emergency in 1976 amid apprehensions that foreign powers were interfering in India’s affairs by pumping money into the country through independent organisations.
  • The FCRA requires every person or NGO seeking to receive foreign donations to be
    • Registered under the Act
    • To open a bank account for the receipt of foreign funds in the State Bank of India, Delhi.
    • To utilise those funds only for the purpose for which they have been received and as stipulated in the Act.

 Eligibility criteria for the registration

  • These registrations are granted to individuals or associations that have definite cultural, economic, educational, religious, and social programmes.
  • The applicant should not be fictitious or benami; and should not have been prosecuted or convicted for indulging in activities aimed at conversion through inducement or force, either directly or indirectly, from one religious faith to another.
  • Once granted, FCRA registration is valid for five years. NGOs are expected to apply for renewal within six months of the date of expiry of registration.
  • Registration can be cancelled if an inquiry finds a false statement in the application
  • Once the registration of an NGO is cancelled, it is not eligible for re-registration for three years.
  • The ministry also has the power to suspend an NGO’s registration for 180 days pending inquiry and can freeze its funds.
  • All orders of the government can be challenged in the High Court.


Q1) What is an NGO?

A non-governmental organization (NGO) is a group that functions independently of any government. It is usually non-profit. NGOs, sometimes called civil society organizations, are established on community, national, and international levels.

Source: FCRA licence of think tank CPR suspended: What is FCRA, why the licence matters