Reading skills – Passage

Class: IX

Read the passage carefully and answer the given questions

 The FCRA regulates foreign donations and ensures that such contributions do not adversely
affect internal security. First enacted in 1976, it was amended in 2010 when a slew of new
measures were adopted to regulate foreign donations. The FCRA is applicable to all associations,
groups and NGOs which intend to receive foreign donations. It is mandatory for all such NGOs to
register themselves under the FCRA. The registration is initially valid for 5 years and it can be
renewed subsequently if they comply with all norms.
 Foreign Contribution means the donation, delivery or transfer made by any foreign source of
any: Article (whose market value is not more than one lakh rupees); Currency (whether Indian
or foreign); Securities. Foreign donations may be those from Governments, international
agencies, foreign companies, trusts, corporations, foreign citizens.
 However, some agencies like the UN, World Bank, IMF etc. are EXEMPTED from the definition of
foreign donors. According to the FCRA, foreign donations cannot be accepted by Election
candidates, Editors and publishers of newspapers, Judges and government employees, Political
parties and members of legislature etc.
 The FCRA was amended in September 2020 to introduce some new restrictions, including
capping of the administrative expenses of NGOs at 20% of their foreign donations; requiring
them to have a State Bank of India account at a Delhi Branch; prohibiting the transfer of grants
received under FCRA to any other outfit; providing sweeping powers to the Ministry of Home
Affairs to cancel the FCRA certificate of an NGO; making legal for political parties to accept
foreign aid through Indian subsidiaries; giving power to the government to suspend the
registration of a person for a period not exceeding 180 days; making Aadhar as mandatory for all
office bearers, directors or key functionaries of the organization.

Questions

1. What are the functions of FCRA? Who requires FCRA registration?

2. What is the validity period of NGO?

3. Explain the terms “Article and Currency”

4. Who cannot receive foreign donations?

5. Which of the agencies are exempted from being called as Donor?

6. Mention any three restrictions made by the FCRA amendment 2020