With reference to Foreign Contribution Regulation Act (FCRA) consider the following statements:1.FCRA is a law that regulates the investment of foreign capital in India.2.The law mandates that all NGOs register themselves under the FCRA and its registration is initially valid for five years and it can be renewed subsequently if they comply with all norms.3.The FCRA requires all individuals, associations, and companies that receive foreign contributions to register with the Government of India.Which of the statements given above are correct?

Q. With reference to Foreign Contribution Regulation Act (FCRA) consider the following statements::
1.FCRA is a law that regulates the investment of foreign capital in India.
2.The law mandates that all NGOs register themselves under the FCRA and its registration is initially valid for five years and it can be renewed subsequently if they comply with all norms.
3.The FCRA requires all individuals, associations, and companies that receive foreign contributions to register with the Government of India.
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: B

Notes:

Explanation –

Statement 1 is incorrect. FCRA is a law that regulates the receipt and utilization of foreign contributions by individuals, associations, and companies in India. It does not regulate the investment of foreign capital in India. Investment of foreign capital in India is regulated by govt. FDI policies.

Statements 2 and 3 are correct. FCRA mandates that all NGOs register themselves under the FCRA and its registration is initially valid for five years and it can be renewed subsequently if they comply with all norms. The FCRA requires all individuals, associations, and companies that receive foreign contributions to register with the Government of India.

Source: ForumIAS

Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS