Question : Amendment to FCRA

(a) whether there has been some amendment in the rules under Foreign Contribution Regulation Act (FCRA) by the Government enabling Indians to receive higher transfer of funds in a year from relatives staying abroad;

(b) if so, the details thereof and the reasons therefor;

(c) whether the amount so received by Indians from relatives staying abroad have to be declared to the Government and if so, the details thereof;

(d) whether some other relaxations have also been given under these new FCRA rules notified recently; and

(e) if so, the details thereof along with the benefits to accrue to the people and the business entities, if any, in this regard?

MINISTER OF STATE IN THE MINISTRY OF HOME AFFAIRS
(SHRI NITYANAND RAI)


(a) to (e): The Central Government has notified the Foreign Contribution (Regulation) Amendment Rules, 2022 vide GSR No. 506(E) on 1st July, 2022 to further amend the Foreign Contribution (Regulation) Rules, 2011



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L.S.US.Q.NO. 1392 FOR 26.07.2022

(FCRR, 2011). These amendments aim to reduce compliance burden on citizens. As per amended Rule 6 of FCRR 2011, any person receiving Foreign Contribution (FC) more than Rs. 10 Lakh in a financial year from relatives [as defined in section 2(1)(r) of the Foreign Contribution (Regulation) Act, 2010] has to intimate to Central Government within three months of receipt of FC. Earlier such monetary threshold limit was Rs 1 Lakh and intimation to Central Govt. was required within thirty days.

Further, the time limit prescribed in rules 9(1)(e), 9(2)(e) and 17A of FCRR, 2011 for intimation to Central Government has been increased from 15 days to 45 days.
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