{"id":17056,"date":"2020-09-29T12:22:12","date_gmt":"2020-09-29T06:52:12","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=17056"},"modified":"2020-11-06T18:12:27","modified_gmt":"2020-11-06T12:42:27","slug":"lok-sabha-passed-the-foreign-contribution-regulation-amendment-bill-2020","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/lok-sabha-passed-the-foreign-contribution-regulation-amendment-bill-2020\/","title":{"rendered":"Lok Sabha Passed the Foreign Contribution (Regulation) Amendment Bill, 2020"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The lower house of the parliament finally passed the Foreign Contribution Regulation Amendment Bill, 2020. The Act governs the utilization and acceptance of overseas contribution by companies, individual, and associations. Foreign contribution is referred to as transfer of any security or currency by the overseas source. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"581\" height=\"340\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/09\/image-115.png\" alt=\"Foreign Contribution (Regulation) Amendment Bill, 2020\" class=\"wp-image-17057\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/09\/image-115.png 581w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/09\/image-115-300x176.png 300w\" sizes=\"(max-width: 581px) 100vw, 581px\" \/><\/figure><\/div>\n\n\n\n<p><strong><em>Prohibition on the acceptance of foreign contribution: The Act cut off the exposure of the following individuals to the foreign contribution:-<\/em><\/strong><\/p>\n\n\n\n<ul><li>Government\nservants<\/li><li>Editor <\/li><li>Judges<\/li><li>Election\ncandidates<\/li><li>Members of\nlegislature. <\/li><li>Publisher\nof the newspaper. <\/li><\/ul>\n\n\n\n<p>The bill also incorporate public servant to the list as defined under the Indian Penal Code. Public servant is defined as any individual who involve with the services or pay of the government or paid by the <em><strong>government<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Government\"><em><strong>[1]<\/strong><\/em><\/a><\/sup> for performing certain public duties. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/online-fcra-registration-makes-easy-foreign-contributions-process-for-ngos\/\">How FCRA Registration Makes Foreign Contributions Process Hassle-Free for NGOs?<\/a><\/mark><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/lok-sabha-passed-the-foreign-contribution-regulation-amendment-bill-2020\/#Deployment_of_Aadhaar\" >Deployment of Aadhaar<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/lok-sabha-passed-the-foreign-contribution-regulation-amendment-bill-2020\/#Limitation_on_utilization_of_Overseas_Contribution\" >Limitation on utilization of Overseas\nContribution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/lok-sabha-passed-the-foreign-contribution-regulation-amendment-bill-2020\/#License_Renewal\" >License Renewal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/lok-sabha-passed-the-foreign-contribution-regulation-amendment-bill-2020\/#Limiting_the_utilization_of_overseas_contribution_for_administrative_purposes\" >Limiting the utilization of overseas\ncontribution for administrative purposes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/lok-sabha-passed-the-foreign-contribution-regulation-amendment-bill-2020\/#Surrendering_Certificate\" >Surrendering Certificate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/lok-sabha-passed-the-foreign-contribution-regulation-amendment-bill-2020\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Deployment_of_Aadhaar\"><\/span>Deployment of Aadhaar<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>The Act has deployed certain stipulations for the acceptance of the overseas currency. These are as follows:<\/strong><\/em><\/p>\n\n\n\n<ul><li>Any person willing to accept overseas currency must availed a Aadhaar registration certification from the central government<\/li><li>In the absence of the registration certification, the individual must availed prior permission from the relevant authority to serve the same purpose.<\/li><\/ul>\n\n\n\n<p>Any individual intends to avail registration or prior permission for the\nacceptance of the overseas contribution must file a detail application to the\ncentral government in a predetermined format. The bill further states that\ninclusion of the Aadhaar is must in such cases as it act as an identification\ndocument. In case of the overseas applicant, they must furnish the copy of Overseas\nCitizen of India card or passport for identification purpose. <\/p>\n\n\n\n<p>The Act requires the registered person to accept the overseas\ncontribution only in a single branch of a bank prescribed by them. However, the\nAct doesn\u2019t impose any limitation over the utilization of the contribution as\nthe person is free to transfer such contribution to any other bank account. <\/p>\n\n\n\n<p>The bill amends to confirm that overseas contribution must be routed\nonly to an account tagged as \u201cFCRA account\u201d by the schedule bank in a branch of\nState Bank of India, as per the notification of the central government. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Limitation_on_utilization_of_Overseas_Contribution\"><\/span>Limitation on utilization of Overseas\nContribution<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the Act, if an individual accepting overseas contribution is found guilty of infringing any regulations of the Act or the Foreign Contribution (Regulation) Act, 1976, aka <a href=\"https:\/\/corpbiz.io\/fcra-registration\"><strong>FCRA<\/strong><\/a>, the unutilized or unreceived overseas contribution might be received or utilized, only with prior permission of the central government.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"License_Renewal\"><\/span>License Renewal<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the law, the\nregistration certificate must be renewed before six month of its expiry. The\nBill also states that the government may arrange an inquiry prior renewal of\nthe registration certificate to make sure that individual filing an\napplication: (i) is not fabricated or Benami (ii) has not been found guilty of\nraising communal tension or engaged with activities related to religious\nconversion, and (iii) has not been convicted for diversion of the funds, and\namong other stipulates. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Limiting_the_utilization_of_overseas_contribution_for_administrative_purposes\"><\/span>Limiting the utilization of overseas\ncontribution for administrative purposes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the Act, an\nindividual who receives overseas contribution must not deviate from the purpose\nfor which it has been received. Moreover, the individual are now only permitted\nto allocate 20% of the contribution for meeting administrative related\nexpenses. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Surrendering_Certificate\"><\/span>Surrendering Certificate<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The bill incorporates\nthe provision permitting the central government to allow an individual to\nsurrender their certificate. In the purview of the above, government may\nconduct investigation to ensure that concerned person has not infringed any\nregulation of the Act and management handling its foreign contribution has been\nvested properly in an authority. <\/p>\n\n\n\n<p>Suspension of\nregistration: As per the Act, the government reserved the right to suspend the\nregistration of an individual for a period of one hundred and eight days. The bill\nstates that additional 180 days may be deployed in this regards.&nbsp; <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Foreign Contribution Regulation Amendment Bill, 2020 would definitely impart transparency and increases the reliability overtimes. Inclusion of Aadhaar is much needed move by the government which in turn reins the invalid activities regarding the overseas contribution. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/banking-regulation-amendment-bill-2020-passed-by-lok-sabha\/\">An Outlook on Banking Regulation (Amendment) Bill, 2020 Passed by Lok Sabha<\/a><\/mark><\/p>\n\n\n<a href=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/09\/FCRA-Amendment-2020.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">FCRA-Amendment-2020<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The lower house of the parliament finally passed the Foreign Contribution Regulation Amendment Bill, 2020. The Act governs the utilization and acceptance of overseas contribution by companies, individual, and associations. Foreign contribution is referred to as transfer of any security or currency by the overseas source. Prohibition on the acceptance of foreign contribution: The Act [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":17066,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[267,153],"tags":[1050],"acf":{"service_id":"79"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":5162,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17056"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=17056"}],"version-history":[{"count":12,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17056\/revisions"}],"predecessor-version":[{"id":19103,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/17056\/revisions\/19103"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/17066"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=17056"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=17056"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=17056"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}