With reference to the Foreign Contribution (Regulation) Act (FCRA), consider the following statements: 1. It applies to all registered non-profit organizations (NPOs) receiving foreign funds. 2. Interest received on foreign contributions deposited in a bank is not considered a "foreign contribution" under the FCRA. 3. The act aims to prevent foreigners from influencing Indian electoral politics. Which of the statements given above are correct? |ForumIAS

Q. With reference to the Foreign Contribution (Regulation) Act (FCRA), consider the following statements:
1.It applies to all registered non-profit organizations (NPOs) receiving foreign funds.
2.Interest received on foreign contributions deposited in a bank is not considered a “foreign contribution” under the FCRA.
3.The act aims to prevent foreigners from influencing Indian electoral politics.
Which of the statements given above are correct?

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: C

Notes:

Explanation –

Statements 1 and 3 are correct. The Foreign Contribution (Regulation) Act (FCRA) applies to all registered NPOs that receive foreign contributions. These organizations must register with the Ministry of Home Affairs and comply with the regulations set forth by the FCRA. One of the primary objectives of the FCRA is to prevent foreign influence in Indian electoral politics and other areas that could be detrimental to national interests.

Statement 2 is incorrect. According to the FCRA, the interest accrued on foreign contributions deposited in a bank is considered a “foreign contribution”.

Source: The Hindu

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