New Delhi– Seeking to promote transparency in dealings with foreign-funded NGOs, the Modi government on Monday notified the amended Foreign Contribution (Regulation) Rules, 2015, that require all FCRA services and transactions to be made online. Applications for all registration, grant of prior permission and renewal of registration under FCRA, 2010, will now be accepted online, with fee for various FCRA services to be deposited through a payment gateway.
On its part, the FCRA division of the home ministry will issue digitally signed registration certificates, prior permission sanctions, etc, to applicants through e-mails.
As per the amended FCRA rules, all NGOs registered or granted prior permission under FCRA, are now required to upload details of foreign contributions received and utilized by them, every three months on their website or the FCRA website, fcraonline.nic.in. TOI had reported this proposed reform on July 27, 2015. The original FCRA draft had proposed this periodicity at barely seven days, which was objected to by many NGOs.
The new FCRA rules ensure that human interface with the foreign-funded NGOs is minimized, with all queries and replies to applicants to be made through e-mails. The number of application/intimation forms has been cut from 10 to 6, and the number of documents to be attached with applications also significantly reduced. The list of purposes for which foreign contribution can be utilized has been rationalized, The Times of India reported.
NGOs now need to file their annual returns online, with the hard copy version dispensed with. The annual returns must be placed quarterly on the NGO’s website or the FCRA website maintained by the home ministry.
Launching the revamped website for FCRA services on Monday afternoon, Union home minister Rajnath Singh said it would minimize human interface by making all FCRA services online. Home ministry had earlier this year embarked on the exercise to make FCRA services online to save NGOs the trouble of running around to avail of various services and rule out any scope for corruption on part of the FCRA staff to expedite service delivery.
With the new FCRA rules requiring application for renewal of registration to be made online, the condition of applying one year before expiry of existing registration certificate has been done away with.
All FCRA designated bank accounts and utilization accounts will now have to be brought on the online platform of public finance management service (PFMS) of controller general of accounts, ministry of finance.
Importantly, NGOs now no longer need prior permission from the FCRA authorities for change of name, aims & objects, registered address, change of bank/account or change in governing body members. A mere intimation through the FCRA online service will suffice.
Where an association receives or utilizes nil foreign contribution in a given year, the condition requiring submission of a chartered accountant’s certificate and audited statement of accounts with the annual return has been dropped.
With many NGOs objecting to the original proposal requiring them to mandatorily provide details of Twitter/Facebook accounts of their association as well as officer bearers, the government has made furnishing of such information optional. Even the information regarding Facebook page, Twitter handle and other personal details of officer bearers of the donor organization has been made optional.
The declaration and undertaking in the application for registration, prior permission and renewal and in the annual return has been simplified. Besides, NGOs will now not be required to furnish details of functionaries of the association in the annual return.
According to the home ministry, the amendments to Foreign Contribution Regulation Rules are the second major initiative of the Modi government after the e-tourist visa scheme, launched on November 27, 2014, as ‘tourist visa on arrival enabled by electronic travel authorization’ scheme.