FCRA Amendment 2020 – Implemented EFFECTIVE – 29 Sept ‎‎2020‎

Govt. has shown un-characteristic rush to get FCRA implemented. It has notified the FCRA Amendment Act 2020 and made it effective from 29th September 2020. The short Notification SO 3395(E) dt. 29th September 2020 reads:

In exercise of the powers conferred by sub-section (2) of section 1 of the Foreign Contribution (Regulation) Amendment Act 2020, the Central Government hereby appoints the 29th day of September 2020, as the date on which the provisions of the said Act, shall come into force.

Thus there is no doubt that the provisions of amendment Act have become effective yesterday, though how these would be implemented, NGOs have been left to fend for themselves, as there are no guidelines or amended rules on transfer of funds to partners (Rule 24 still on Rule book though can no longer be implemented), or how NGOs are supposed to open designated account with SBI New Delhi, or anyone else who has genuine difficulties or questions.

Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008

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11 Responses to FCRA Amendment 2020 – Implemented EFFECTIVE – 29 Sept ‎‎2020‎

  1. Manichandra singh says:

    Respected sir
    How about this no sub granting condition ? When ngo turned mother ngo, .plz reply. M suffocating for this issue about no sub grant .

  2. Pinki Ambani says:

    Hello,
    I would like to ask to that if any addition in board members addthan we have to update in FcRa portal? Any time limit or we can do it with renewal process?

  3. Pragya Thakur says:

    Sir,

    The new amendment says that we need to open a Bank Account in SBI to receive foreign grants but till now the specified branches of SBI is not notified. Can we receive foreign donations & grants in our existing FCRA Bank Account (not in SBI)?

  4. UDAYASHANKAR CHATURVEDULA says:

    IT IS A CASE OF VIOLATION OF CONSTITUTIONAL PRINCIPLES OF EQUALITY BEFORE LAW: COMPARE FC RULES AND REGULATIONS APPLIED TO POLITICAL PARTIES WITH WHAT IS BEING APPLIED TO CSOs.
    WHY DOES GOVT MAKE EASE OF ALLEVIATING POVERTY MORE DIFFICULT? COMPARE IT WITH EASE OF DOING BUSINESS.
    WHY DOES GOVERNMENT FAVOUR FDI FOR PROFIT AND TIGHTEN / EVEN DISCOURAGE FDI NOT FOR PROFIT THROUGH FCRA?

    • Subhash Mittal says:

      Well said, Sir. Unfortunately, Govt just did not consult the stakeholders before making such drastic changes.

  5. Thomas Mathews says:

    My take is FCRA sub grant which is already received can be spent for the purpose received. If FCRA sub grant not spent and you have received part of the grant, it is better to return the grant and exit the grant agreement. Staff recruited for the sub grant will be a problem if they cannot be reassigned to other projects. In short exit where possible instead of getting into compliations with MHA.

  6. Respected sir
    Greetings
    today we received one information regarding the FCRA Amendment act 2020 shall come in to force from 29th Sep 2020. Do we need to follow the new amendments immediately ?
    if so, what about ongoing subgrant programme ? Staff and other expenditures ?
    if anybody has suggestions on this ?

    pl give your suggestions on this above issues ….. pl

    • Subhash Mittal says:

      If you have rec’d sub-grant, then you may implement the same.

      However if this means you will need to deploy fresh staff, who you may not be able to continue due to non-availability of subsequent grants, then might as well refund the Grant.

      I know these are difficult choices, and hence decisions are not easy.

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