FCRA Licence Renewal: MHA Directive

Context

  • The Union Home Ministry (MHA) issued a directive to NGOs regarding the renewal of registration under the Foreign Contribution (Regulation) Act (FCRA), 2010.

Key Highlights

  • Renewal Application:
    NGOs must apply for renewal at least 4 months before the expiry of registration validity.
  • Legal Provision:
    As per Section 16(1) of FCRA, every certificate requires renewal every 5 years.
  • Issue Identified:
    • Many NGOs file renewal applications less than 90 days before expiry.
    • This delays security clearances and scrutiny, causing disruption in ongoing activities.
  • Objective of Directive:
    • Ensure timely processing.
    • Avoid disruption in NGO work.
    • Maintain due diligence in regulation of foreign contributions.

UPSC Relevance

GS-II (Polity & Governance)

  • Regulation of NGOs.
  • Role of the State in oversight of civil society.
  • Transparency in foreign funding.

GS-III (Internal Security)

  • FCRA as a tool to regulate foreign inflows.
  • Prevents misuse of foreign contributions for activities against national security, sovereignty, and integrity.
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