Amendment in the year 2010 and 2015
Foreign Contribution (Regulation) Act 2010 (FCRA 2010)
was passed by Rajya Sabha on 19th August 2010 with
a view to replace the Foreign Contribution (Regulation)
The Foreign Contribution (Regulation) Act, 2010 has
come into effect from May 1, 2011. The Ministry
of Home Affairs
has issued the necessary Gazette Notification vide
S.O. 999 (E) dated the 29th April, 2011 in this
The Ministry of Home Affairs has also issued a Gazette
Notification vide G.S.R. 349 (E) dated the 29th
April, 2011 notifying the Foreign Contribution
Rules, 2011 made under section 48 of FCRA, 2010.The
FCR Rules, 2011 have come into force simultaneously
FCRA, 2010 i.e w.e.f 1st May, 2011.
The new FCRA, 2010 has a much broader applicability;
it is applicable to individuals, Hindu Undivided
Family (HUF), Association and a section 8 company.
earlier Act, the term person was not defined
and generally the
Act referred to the term ‘Association’.
The FCRA is amended to remove some inadequacies
and practical difficulties in administration
of the Act.
For instance Section 17 of FCRA 2010 provides
that multiple bank accounts can be opened
for the purposes
provided only one bank account is maintained
for receiving foreign contribution. This
amendment provides a great
relief to all the NGOs which were struggling
the arbitrary disallowance of multiple bank
FCRA, 1976. Another relief is the time limit
for processing an application for registration.
the old FCRA there
was no time limit but section 12 of the FCRA
2010, provides the time limit and applications
to be processed within 90 days. The FCRA
department shall also provide reasons for rejections.Recently
been far reaching changes in the law and
pertaining to Foreign Contributions under
the Foreign Contribution
(Regulation) Act 2010 (FCRA). The government
of India, Ministry of Home Affairs has notified
to the Foreign Contribution (Regulation)
Rules 2011 (FCRR). By virtue of the notification
rules shall be known as Foreign Contribution
(Regulation) Rules, 2015.
The primary objective of these amendments strives to
make all the FCRA services in the online form at the
FCRA website. Some of the services such as Registration,
Renewal and submission of annual returns have become
online without any submission of hard copies. Further,
there has been restructuring of FC forms where the forms
have been reduced from 10 to 6. Now, there is no requirement
of prior approval for change in FC designated Account
and change of board members. Only intimation in Form
FC-6 should be submitted electronically at the FCRA website.