Foreign funds transfer to NGOs plummet in the year of 2020-21 : Central Govt

New Delhi – Nityanand Rai, Ministry of Home Affairs (MHA) informed the parliament that in the financial year 2020-21, NGOs observed a steep decline in foreign funding.

Rai stated, 729 NGOs were transferred Rs 1314.4 cr in the financial year of 2019-20 whereas only 69 NGOs were transferred Rs 28.91 cr in the year of 2020-21 from overseas. The parliament had enacted ‘Foreign Contribution (Regulation) Act amendment (FCRA), 2020’ by amending section 7 of ‘Foreign Contribution Regulation Act (FCRA), 2010’ in September 2020. It prohibited foreign contribution transfers.

Asaduddin Owaisi, MP of MIM questioned, ‘whether the steps taken by the Government has impacted NGOs working at a grassroots level for the development and awareness of society, especially in the healthcare sector ?’ Nityanand Rai answered this law does not hinder any transfer of funds for any genuine NGO that operates. Any NGO is free to obtain the certificate of registration to comply with the legal requirements of FCRA, 2010 and FCFR, 2011 to take prior permission. These NGOs can comply with the law which grants them permission to receive foreign contributions.