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The much anticipated Foreign Contribution (Regulation) (Amendment) Rules, 2020 amending Foreign Contribution (Regulation) Rules, 2011 have been released. The Rules provide the formats of revised forms for registration, prior permission and other applications and intimations required under FCRA. Some of the key provisions in the Rules are below:

  1. For a person to be eligible for registration, one of the conditions is that it should have spent a minimum amount of INR 1.5 million (approx.. USD 20,000) on its core activities for the benefit of society during the last three financial years. Earlier the expenditure threshold was INR 1 million (approx.. USD 13,000). The person can now consider the inclusion of its existing capital investment in assets like land, building, other permanent structures, vehicles, equipment in the computation of its spending during last three years subject to certain conditions.
  2. The Ministry of Home Affairs (MHA) now has the power to decide on instalment tranches for grants under prior permission that are over INR 10 million (approx.. USD 130,000). Second and subsequent instalments shall be released after submission of proof of utilisation of 75% of the grant received in the previous instalment and after field inquiry of the utilisation of foreign contribution.
  3. Now, any change in office bearers or key functionaries or members mentioned in the application for grant of registration or prior permission or renewal of registration, as the case may be, has to be informed in Form FC-6E within 15 days of such change. It has also been added that such change shall be effective only after final approval by the Central Government.

Click here for the Foreign Contribution (Regulation) (Amendment) Rules, 2020 (English version is from page 34 onwards).

Last updated on November 17, 2020.

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