Foreign Contribution (Regulation) Amendment Rules 2022

Concurrent List (Entry 28) and State List (Entry 32) mention about charities and charitable institutions, charitable and religious endowments and religious institutions.

• The 97th Constitutional Amendment Act of 2011 gave a constitutional status and protection to co-operative societies. In this context, it made the following three changes in the Constitution:
  1. It made the right to form co-operative societies a fundamental right (Article 19)
  2. It included a new Directive Principle of State Policy on promotion of co-operative societies (Article 43-B). It states that: “The state shall endeavour to promote voluntary formation, autonomous functioning, democratic control and professional management of cooperative societies”.
  3. It added a new Part IX-B in the Constitution which is entitled “The Co-operative Societies” (Articles 243-ZH to 243-ZT).

Foreign Contribution (Regulation) Amendment Rules 2022

Recently, the Central government made seven key amendments to existing rules of the Foreign Contribution (Regulation) Act (FCRA) rules 2011.

• It aims at prohibiting acceptance and utilization of foreign contribution or foreign hospitality for any activities detrimental to the national interest.
• The principal rules were published on April 29, 2011, and subsequently amended on April 12, 2012; December 14, 2015; March 7, 2019; September 16, 2019; November 10, 2020, and January 11, 2021.

Key Amendments: There are two amendments in rule 6 by substituting the words "one lakh rupees" with the words "ten lakh rupees"; and the words "thirty days" with the words "three months".

• There is also an amendment in rule 9, for the words "fifteen days", the words "forty-five days" shall be substituted; and in sub-rule (2), in clause (e), for the words "fifteen days", the words "forty-five days" shall be substituted.
• Clause (b) of rule 13 has been omitted from the fresh rules; and in rule 17A, for the words "fifteen days", the words "forty-five days" shall be substituted.
• The last amendment is done in rule 20, and it mentions that for the words "on a plain paper", the words "in such form and manner, including in electronic form as may be specified by the Central Government" shall be substituted.

Expected Impact: Curbing Outflow of Funds - This will help curbing the outflow of funds and on the other hand enhancing inward remittances.

• Stabilising Forex – It will lead to an increase in inflow of funds into India which will stabilise the forex reserves and also the currency.
• Similarly, an increase in import duty on gold from 7.5 per cent to 12.5 per cent will discourage gold import as it will result in increase in the price of gold in India.