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MHA Tightens FCRA Rules: NGOs With Foreign Funding Can’t Publish News Without RNI Nod

The revised rules also mandate that NGOs applying for FCRA registration must submit an undertaking affirming their compliance with the Good Practice Guidelines set by the Financial Action Task Force.

MHA Tightens FCRA Rules: NGOs With Foreign Funding Can’t Publish News Without RNI Nod

Image used for illustrative purposes only. (File photo)

The Ministry of Home Affairs (MHA) has amended the rules under the Foreign Contribution Regulation Act (FCRA), introducing stricter conditions for non-governmental organisations (NGOs) involved in publication-related activities and receiving foreign funds.
 
As per a notification issued late Monday (May 26) night, such NGOs will no longer be permitted to publish any newsletter unless they obtain a certificate from the Registrar of Newspapers for India confirming that they do not disseminate any news content.

The revised rules also mandate that NGOs applying for FCRA registration must submit an undertaking affirming their compliance with the Good Practice Guidelines set by the Financial Action Task Force (FATF). Additionally, they are required to provide financial statements and audit reports for the past three years.

“Such bodies or NGOs, which are seeking registration, must enclose financial statements and audit reports of the last three years, including the statement of assets and liabilities, receipts and payments account, and income and expenditure account,” the notification read.

In cases where these financial documents do not present activity-wise expenditure, the organisations must furnish a certificate from a chartered accountant clearly outlining the expenditure details.

“If the audit reports and financial statements do not contain activity-wise expenditure for the last three financial years, a chartered accountant’s certificate specifying the activity-wise amount spent by the association, duly reconciled with the income and expenditure account and the receipt and payment account must be submitted,” it added.

Further, NGOs whose objectives include publication-related work, as specified in their Memorandum of Association or trust deed, must submit an undertaking from their chief functionary confirming adherence to the provisions of the FCRA, 2010.

“In case the association or the NGO is engaged in publication-related activities or if publication activities are among its aims as stated in the Memorandum of Association or trust deed, an undertaking from the chief functionary regarding compliance with the FCRA, 2010, must be given,” the notification said. 

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