Aadhaar mandatory for NGOs to receive foreign funds: All you need to know about FCRA

Aadhaar will now be mandatory for office bearers of any NGOs to receive foreign funds after the Lok Sabha on Monday passed the amendments to Foreign Contribution (Regulation) Act, 2010. The Bill says that any person seeking prior permission, registration or renewal of registration must provide the Aadhaar number of its office bearers, directors or key functionaries, as an identification document. 

Once the bill is cleared by the Rajya Sabha and gets assent from President Ram Nath Kovind, public servants will be barred from receiving funding from abroad. Moreover, the Bill proposes that not more than 20% of the total foreign funds received could be spent on administrative expenses. Presently, the limit is 50%. 

How will the NGOs get affected? 

Amid concerns raised by various Opposition members about The Foreign Contribution (Regulation) Amendment Bill, 2020, Minister of State for Home Nityanand Rai asserted that the bill is not against any religion or NGO. The proposed legislation will also not stop foreign contributions in any way, he noted. 

He said that the new rules will help stop the "misuse of the money" and rejected criticism by some opposition members that it targets minorities and has a few unnecessary provisions. 

"When the government brought FCRA Bill in 2010, we were in opposition but we supported it. This amendment is not against NGOs and is not an attack on any religion. It will not stop foreign contribution. FCRA is a national and internal security law. This amendment is essential for Atmanirbhar Bharat," he said. 

Aadhaar Card more important 

Aadhaar card is already required for several financial tasks in India and the FCRA amendments make it more important. Responding to queries by MPs over Aadhaar card, the minister said that it is a significant proof of identification. 

"Issue of Aadhaar Card was raised. Supreme Court clearly said it's not mandatory to make Aadhaar Card a means to identify oneself everywhere. But it can be made mandatory by bringing a law, if important. Hence the amendment," he said.