Amendments to FCRA aimed at bringing in more transparency: India’s US envoy

India’s ambassador to the US, Vinay Mohan Kwatra, addressed concerns about the amendments to the Foreign Contribution (Regulation) Act (FCRA) via social media. The US Republican Congressman Riley Moore expressed worry that the amendments could enable the Indian government to control churches and charities. However, Kwatra clarified that the amendments are meant to enhance transparency and expected organizations to receive money through a standardized process.

He referred to similar laws enacted by the US, such as FARA (Foreign Agents Registration Act) since 1938 and FATCA (Foreign Account Tax Compliance Act) since 2010, as well as Australia, Canada, the UK, and the EU. Kwatra emphasized that when a registration is cancelled or surrendered, these funds and their assets go to a state government authority.

He also noted that the amendments aim to safeguard these assets and ensure their return if the organization reinstates its registration. Kwatra rejected the notion that the law targets a particular community or aims to cut off foreign aid to civil society. With over three million NGOs in India, only 14,450 hold FCRA registration.

The majority of civil society organizations remain outside the Act. He reiterated that the FCRA was enacted in 1976, with further modernization through amendments in 2010, 2016, 2018, and 2020, reflecting a growing emphasis on transparency, better governance, and clearer rules in regulating foreign financial flows in public and political spaces.