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[DAILY CURRENT AFFAIRS, 21 APRIL 2023]

QUANTUM TECHNOLOGIES AND APPLICATIONS

1. Context

For the first time in South Asia, Indian scientists working in the Garbh-Ini programme, an interdisciplinary group for advanced research on birth outcomes, have identified 19 single nucleotide polymorphisms (SNPs), or genetic markers, that have been found to be associated with preterm or premature birth. The study, published in the Lancet Regional Health-South East Asia journal, reported that five of these SNPs have been found to “confer increased risk of early preterm birth (birth before 33 weeks)’’ and can predict premature births.

2. Key points

  • The new economy is based on innovations that disrupt established business models.
  • Artificial intelligence, Internet-of-Things (IoT), 3D printing, drones, DNA data storage, quantum computing, etc., are re-writing the world economic order.
  • Quantum technology is opening up new frontiers in computing, communications and cyber security with widespread applications.
  • It is expected that lots of commercial applications would emerge from theoretical constructs which are developing in this area.
  • It is proposed to provide an outlay of 8000 crores over five years for the National Mission on Quantum Technologies and Applications.

3. Quantum technologies Mission

  • Quantum technologies are rapidly developing globally with huge disruptive potential.
  • The next-generation transformative technologies that will receive a push under this mission include quantum computers and computing, quantum communication, quantum key distribution, encryption, crypt analysis, quantum devices, quantum sensing, quantum materials, quantum clock and so on.
  • The areas of focus for the Mission will be fundamental science, translation, technology development, human and infrastructural resource generation, innovation and start-ups to address issues concerning national priorities.
  • Their applications which will receive a boost include those in aerospace engineering, numerical weather prediction, simulations, securing communications and financial transactions, cyber security, advanced manufacturing, health, agriculture, education and other important sectors with a focus on the creation of highly skilled jobs, human resources development, start-ups and entrepreneurship leading to technology lead economic growth.

4. The major technology disruptions

  • The range of quantum technologies is expected to be one of the major technology disruptions that will change the entire paradigm of computation, communication and encryption.
  • It is perceived that the countries that achieve an edge in this emerging field will have a greater advantage in garnering multifold economic growth and dominant leadership role.
  • The transition of quantum science and technology from a field of active interest in research laboratories to one that can be applied in day-to-day life is also the opportune moment that provides the space for many startup companies to form and develop.
  • The Mission draws upon the existing deep strengths within academic institutes across India to support interdisciplinary research projects in key verticals involving quantum technology, while simultaneously developing key foundational strengths in important core areas.
  • QT research, operational implementations, Human resource availability and technology development are in a rudimentary stage
  • It has become imperative both for the government and industries to be prepared to develop these emerging and disruptive technologies to secure our communications and financial transactions, remains competitive, drives societal progress, generate employment, foster economic growth and improves the overall quality of life.

5. The Benefits of the Mission

  • The mission will be able to address the ever-increasing technological requirements of society and take into account the international technology trends and road maps of leading countries for the development of next-generation technologies.
  • Implementation of the mission would help develop and bring quantum computers, secured communications through fibre and free space, quantum encryption and crypt-analysis and associated technologies within reach in the country and help address India-specific national and regional issues.
  • The mission will help prepare next-generation skilled manpower, boost translational research and also encourage entrepreneurship and start-up ecosystem development.
  • By promoting advanced research in quantum science and technology, technology development and higher education in science, technology and engineering disciplines India can be brought to par with other advanced countries and can derive several direct and indirect benefits.
  • Quantum Technology is based on the principles of quantum theory, which explains the nature of energy and matter on the atomic and subatomic levels.
  • It concerns the control and manipulation of quantum systems, to achieve information processing beyond the limits of the classical world.
  • Quantum principles will be used for engineering solutions to extremely complex problems in computing, communications, sensing, chemistry, cryptography, imaging and mechanics.
  • The Quantum field has not yet matured for commercialization, due to the extreme scientific challenges involved.
  • Quantum computers store and process information using quantum two-level systems (quantum bits or qubits) which, unlike classical bits, can be prepared in superposition states.
  • This key ability makes quantum computers extremely powerful compared to conventional computers when solving certain kinds of problems like finding prime factors of large numbers and searching large databases.
  • The prime factorization quantum algorithm has important implications for security as it can be used to break RSA encryption, a popular method for secure communication.
  • Indian physicists and engineers are preparing for a deep dive into the quantum world that holds the secrets for developing exciting technologies for computing, communication, cryptography and many more.

6. The way forward

  • With a solid research base and workforce founded on significant and reliable government support, it can lead to the creation of innovative applications by industries, thereby stimulating economic growth and job creation, which will feed back into a growing quantum-based economy.
  • The government's financial and organizational support will also ensure that both the public and private sectors will benefit.
  • It will establish standards to be applied to all research and help stimulate a pipeline to support research and applications well into the future.
For Prelims: National Mission on Quantum Technologies & Applications, Internet-of-Things, 
For Mains:
1. Discuss the need for implementing the National Mission on Quantum Technologies and Applications. (250 Words)

 

Previous Year Questions

1. Which one of the following is the context in which the term "qubit" is mentioned? (UPSC 2022)

A. Cloud Services

B. Quantum Computing

C. Visible Light Communication Technologies

D. Wireless Communication Technologies

Answer: B

Source: Ministry of Science and Technology

NATIONAL POPULATION REGISTER (NPR)

 

1. Context

The Union Cabinet on Tuesday approved a proposal to conduct Census 2021 and update the National Population Register (NPR). While the Census will be conducted in 2021, the NPR update will take place from April to September 2020 in all the States/UTs except Assam. According to the sources, the Union Cabinet has approved a proposal of the Home Ministry to spend Rs 8,754 crore for the Census 2021 and Rs 3,941 crore for updating the NPR.

2. What is the National Population Register (NPR)?

  • The NPR is a register of the usual residents of the country. It is mandatory for every usual resident of India to register in the NPR. It includes both Indian citizens as well as foreign citizens.
  • The objective of the NPR is to create a comprehensive identity database of every usual resident in the country.
  • The first National Population Register was prepared in 2010 and updating this data was done in 2015 by conducting door-to-door surveys.
  • The next update of the NPR will take place next year from April to September with the House listing phase of the Census 2021.
  • It is being prepared at the local (Village/sub-Town), sub-District, State, and National level under provisions of the Citizenship Act 1955 and the Citizenship (Registration of Citizens and issue of National Identity cards) Rules, 2003.

3. What is the meaning of usual Resident?

According to the Citizenship (Registration of Citizens and the Issue of National Identity Cards) Rules, 2003, a usual resident is a person who has resided in a local area for the past 6 months or more or a person who intends to reside in that area for the next 6 months or more. 

4. What is Census?

  • The Census is the enumeration of the population of the country.  It is being conducted at an interval of 10 years.
  • The Census 2021 will be the 16th census in the country since the first census happened in 1872.
  • However, it will be the 8th census after the Independence. For the first time, the Census 2021 will use the Mobile App for data collection.
  • It will also provide a facility to the public for self-enumeration. 

5. What is the difference between NPR and NRC?

  • The NPR is different from the National Register of Citizens which excludes foreign citizens.
  • According to the Citizenship (Registration of Citizens and Issue of National Identity Cards) Rules, notified on December 10, 2003, a Population Register is ‘the register containing details of persons usually residing in a village or rural area or town or ward or demarcated area (demarcated by the Registrar General of Citizen Registration) within a ward in a town or urban area.
  • Whereas, the ‘National Register of Indian Citizens’ is a register containing details of Indian Citizens living in India and outside India.
  • The rules further say that ‘The National Register of Indian Citizens shall contain the particulars of every citizen i.e. Name; Father’s name; Mother’s name; Sex; Date of birth; Place of birth; Residential address (present and permanent); Marital status if ever married, name of the spouse; Visible identification mark; Date of registration of Citizen; Serial number of registration; and National Identity Number. 

6. What is the link between NPR and NRC?

  • According to the Citizenship (Registration of Citizens and Issue of National Identity Cards) Rules, notified on December 10, 2003, The Central Government may, by an order issued in this regard, decide a date by which the Population Register shall be prepared by collecting information relating to all persons who are usually residing within the jurisdiction of Local Registrar.
  • The Local Register of Indian Citizens shall contain details of persons after due verification made from the Population Register. 

7. What makes NPR Controversial?

  • Another debate has been about privacy. The NPR intends to collect many details of personal data on residents.
  • The NPR is among a host of identity databases such as Aadhaar, voter cards, passports, and more than Home Minister Shah said he would like to see combined into one card. “We will have to end all these separate exercises,” Shah said at the foundation stone laying ceremony for the new Office of Registrar General of India and Census Commissioner on September 24.

8. If there was a previous NPR, how and when did the idea originate?

  • At that time, it had clashed with Aadhaar (UIDAI) over which project would be best suited for transferring government benefits to citizens.
  • The Home Ministry then pushed NPR as a better vehicle because it connected every NPR-recorded resident to a household through the Census.
  • The ministry pushed even put the UIDAI project on the back burner. The data for NPR was first collected in 2010 along with the house-listing phase of Census 2011. In 2015, this data was updated by conducting door-to-door surveys.
  • However, with the NDA government picking out Aadhaar as the key vehicle for the transfer of government benefits in 2016 and putting its weight behind it, NPR took a backseat.
  • It was through a notification on August 3 by the RGI that the idea has been revived. The exercise to update the 2015 NPR with additional data has begun.
  • The digitization of updated information has been completed. 

9. What kind of data will be collected?

The NPR will collect both demographic data and biometric data, although for the latter it will depend upon Aadhaar. In the last NPR in 2010, data were collected on 15 aspects; in the 2020 NPR, there are 21 data points. Again, three of the data points from 2010 (father’s name; mother’s name; spouse’s name) have been clubbed into one in the 2020 exercise, so that, in effect, there are eight new data points, including the contentious “date & place of birth of parents”.
  • Aadhaar Number (voluntary)
  • Mobile Number
  • Date & Place of Birth of Parents
  • Place of Last Residence
  • Passport Number (if Indian passport holder)
  • Voter ID Card Number
  • Permanent Account Number
  • Driving Licence Number
In the test, the RGI is seeking these details and working to update the Civil Registration System of birth and death certificates. 

10. Why does the government want so much data?

  • While there are concerns about privacy, the government's position is based on two grounds. One is that every country must have a comprehensive identity database of its residents with demographic details.
  • In its statement issued after Cabinet approval to NPR, the Home Ministry said the objective of conducting NPR is to “prepare a credible register of every family and individual” living in the country apart from “strengthening security” and “improvement in the targeting of beneficiaries under various Central government schemes”.
  • The second ground, largely to justify the collection of data such as driving license, voter ID, and PAN, is that it will ease the life of those residing in India by cutting red tape.
  • It is common to find different dates of birth of a person on different government documents. NPR will help eliminate that. With NPR data, residents will not have to furnish various proofs of age, address, and other details in official work. It would also eliminate duplication in voter lists.
  • However, insist that NPR information is confidential, meaning it will not be shared with third parties.
  • There is as yet no clarity on the mechanism for the protection of this vast amount of data that the government plans to collect.

11. What does one make of the defiance of West Bengal and Kerala?

  • These Opposition-ruled states are making a political point. Citizenship, aliens, and naturalization are subject matters listed in List 1 of the Seventh Schedule that fall exclusively under the domain of Parliament.
  • Legally, the states have no say in implementing or ruling out NPR. However, given that the manpower is drawn from the states, the defiance could potentially result in a showdown.
For Prelims: National Population Register (NPR), National Register of Indian Citizens (NRC), 
Citizenship (Registration of Citizens and issue of National Identity cards) Rules, 2003, Office of Registrar General of India, Aadhaar (UIDAI).
For Mains: 1. What is National Population Register (NPR)? Discuss its Objectives and how it is different from the National Register of Indian Citizens (NRC). (250 Words)
 
Previous year Question
 
1. With reference to India, consider the following statements: (UPSC 2021)
1. There is only one citizenship and one domicile.
2. A citizen by birth only can become the Head of State.
3. A foreigner once granted citizenship cannot be deprived of it under any circumstances. Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. 1 and 3
D. 2 and 3
Answer: A
 Source: The Indian Express

INDIA-DENMARK RELATIONS

1. Context

Prime Minister Narendra Modi recently held a telephone conversation with his Danish counterpart Mette Frederiksen. The two leaders reviewed the progress of the India-Denmark Green Strategic Partnership.

2. Diplomatic Relations

  • India and Denmark's relations established in September 1949, are marked by regular high-level exchanges and are based on historical links, common democratic traditions and a shared desire for regional, as well as international peace and stability.
  • Bilateral relations were elevated to the level of "Green Strategic Partnership" during the Virtual Summit held on 28 September 2020.
  • The current development of renewed India-Denmark relations has been guided by the "Green Strategic Partnership".

3. Recent High-Level Interactions

  • In January 2019, the then-Danish Prime Minister Lars Lokke Rasmussen visited India for the Vibrant Gujarat Global Summit-2019.
  • Indian Prime Minister Modi met Rasmussen at the India-Nordic Summit in Stockholm on 17 April 2018.
  • The bilateral high-level interactions include the 4th Joint Commission Meeting, The 9th Clean Energy Ministerial (CEM9) held in Copenhagen and the World Food Summit.

4. Bilateral Institutional Mechanisms

  • There are several bilateral institutional mechanisms at different levels between India and Denmark.
  • The Joint Commission Meeting at the Foreign Minister's level (established in 2008) and the Foreign Office Consultations at Secretary-level (established in 1995) provide the broad framework for bilateral consultations encompassing all areas of mutual interest.
  • So far, four meetings of the Joint Commission have been held.
  • The latest meeting was held in Copenhagen in September 2021 during which both sides reviewed the progress made since the launch of the Green Strategic Partnership.
  • Foreign Office Consultations have been held six times since 1995.
Further, broad-ranging dialogue mechanisms between various Ministries of both sides have been put in place by establishing 11 Joint Working Groups in 
  1. Renewable Energy
  2. Shipping and Ports
  3. Agriculture and Animal Husbandry
  4. Food Processing
  5. Science and Technology
  6. Labour Mobility
  7. Environment
  8. Smart Cities
  9. Digitisation
  10. Energy Cooperation and
  11. Health and Medicine 
28 Joint Working Group Meetings have taken place since 2018.
 

5. Commercial and Economic Relations

  • Bilateral trade in goods and services between India and Denmark has grown by 78 per cent from USD 2.8 billion in 2016 to USD 5 billion in 2021.
  • As per Denmark Statistics, the total volume of bilateral trade in goods and services between India and Denmark rose to around USD 5 billion as compared to USD 3.6 billion in 2020.
  • Indian exports reached USD 2 billion in 2021 as compared to USD 1.8 billion in 2020, while imports amounted to around USD 3 billion as against USD 1.8 billion in 2020.

6. Bilateral trade

  • The major export items from India to Denmark are textiles, apparel and yarns related, vehicles and components, metal goods, iron and steel, footwear and travel goods.
  • Major Danish exports to India are medicinal/ Pharmaceutical goods, power generating machinery, industrial machinery, metal waste and ore and organic chemicals.
  • Bilateral trade in services between India and Denmark was USD 2.3 billion in 2020 (import to India in services amounting to USD 1.3 billion and export in the service sector by India valued at USD 1 billion.
  • As per Department for Promotion of Industry and Internal Trade (DPPIIT), the value of total direct investment inflows from Denmark to India from April 2000-March 2021 was USD 677.02 million.
  • Around 200 Danish companies have invested in India in sectors such as Shipping, renewable energy, environment, agriculture, food processing and smart urban development.
  • Several major Danish companies have built a new manufacturing factory under the Make in India Scheme.

6.1. India's Investment in Denmark

  • As per the information available from Invest in Denmark, the total value of Indian investments in Denmark, as of June 2021, was about USD 450 million.
  • Around 25 Indian companies are present in Denmark in various sectors, including IT, renewable energy and engineering.
  • They are providing multiple IT solutions, projects consultancy and outsourcing services for the Danish Services Sector.


7.  Cultural Cooperation

  • The Azadi Ka Amrit Mahotsav, to commemorate 75 years of India’s Independence is being celebrated with much fervour in Copenhagen with events.
  • India's 75th Independence Day was celebrated in Copenhagen with a great enthusiasm with a flag hoisting ceremony and vibrant Azadi Ka Amrit Mahotsav celebrations, attended by a large number of the diaspora.
  • The International Day of Yoga is celebrated every year by the Embassy across Denmark with the active participation of several organisations like Art of Living, Brahma Kumaris and the Danish Sports Yoga Federation.
  • A curtain raiser flash mob was also organized by the Embassy at the iconic Nyhavn venue in Copenhagen on 13th June 2021.
  • As part of the 150th Birth Anniversary Celebrations of Mahatma Gandhi, the Embassy organised various events including talks on Gandhiji and tree-planting ceremonies at more
    than 20 educational institutions.


8. Indian Diaspora / People-to-People Contacts

  • The size of the Indian community in Denmark, inclusive of both NRIs (13,370) and PIOs, (2,750) is approx16,500.
  • These include IT professionals, doctors and engineers. Important streets and public places have been named after Indian leaders.
For Prelims: India-Denmark, Green Strategic Partnership, 
 
 
Previous year questions
 
1. Consider the following countries: (UPSC 2014)
1. Denmark
2. Japan
3. Russian Federation
4. United Kingdom
5. United States of America
Which of the above are the members of the 'Arctic Council'?
A. 1, 2 and 3      B. 2, 3 and 4    C.  1, 4 and 5     D. 1, 3 and 5
 
Answer:D
 
Source: Ministry of External Affairs

CIVIL SERVICES DAY

 

1. Context

The date, April 21, chosen for the celebration of National Civil Service Day, commemorates the day when Sardar Vallabhbhai Patel, Independent India's first home minister, addressed the probationers of the Administrative Services Officers in 1947

2. Historical perspective

  • Civil Servants for the East India Company used to be nominated by the Directors of the Company and thereafter trained at Haileybury College in London and then sent to India.
  • Following Lord Macaulay’s Report of the Select Committee of the British Parliament, the concept of a merit-based modern Civil Service in India was introduced in 1854.
  • The report recommended that the patronage-based system of East India Company should be replaced by a permanent Civil Service based on a merit-based system with entry through competitive examinations.
  • For this purpose, a Civil Service Commission was set up in 1854 in London and competitive examinations were started in 1855. Initially, the examinations for Indian Civil Service were conducted only in London.
  • The maximum age was 23 years and the minimum age was 18 years. The syllabus was designed such that European Classics had a predominant share of marks.
  • All this made it difficult for Indian candidates. Nevertheless, in 1864, the first Indian, Shri Satyendranath Tagore brother of Shri Rabindranath Tagore succeeded.
  • Three years later 4 other Indians succeeded. Throughout the next 50 years, Indians petitioned for simultaneous examinations to be held in India without success because the British Government did not want many Indians to succeed and enter the ICS.
  • It was only after the First World War and the Montagu Chelmsford reforms that this was agreed to. From 1922 onwards the Indian Civil Service Examination began to be held in India also, first in Allahabad and later in Delhi with the setting up of the Federal Public Service Commission.
  • The Examination in London continued to be conducted by the Civil Service Commission.

3. Appointments

  • Similarly, prior to independence, superior police officers belonged to the Indian (Imperial) Police appointed by the Secretary of State by competitive examination.
  • The first open competition for the service was held in England in June 1893, and 10 top candidates were appointed as Probationary Assistant Superintendents of Police.
  • Entry into Imperial Police was thrown open to Indians only after 1920 and the following year examinations for the service were conducted both in England and India.
  • Indianisation of the police service continued to be very slow despite the pronouncement and recommendations of the Islington Commission and the Lee Commission. Till 1931, Indians were appointed against 20% of the total posts of Superintendents of Police.
  • However, because of the non-availability of suitable European candidates, more Indians were appointed to the Indian Police from the year 1939 onwards.

4. Regarding Indian Forest Service 

  • Regarding Forest Service, British Indian Government started the Imperial Forest Department in 1864 and to organize the affairs of the Imperial Forest Department, the Imperial Forest Service was constituted in 1867.
  • From 1867 to 1885, the officers appointed to Imperial Forest Service were trained in France and Germany. Till 1905, they were trained at Coopers Hill, London.
  • In 1920, it was decided that further recruitment to the Imperial Forest Service would be made by direct recruitment in England and India and by promotion from the provincial service in India.
  • After independence, the Indian Forest Service was created in 1966 under the All India Service Act 1951.

5. Classification of Civil Services

  • Regarding Central Civil Services, the Civil Services in British India were classified as covenanted and uncovenanted services on the basis of the nature of work, pay scales, and appointing authority.
  • In 1887, the Aitchinson Commission recommended the reorganization of the services on a new pattern and divided the services into three groups-Imperial, Provincial, and Subordinate.
  • The recruiting and controlling authority of Imperial Services were the ‘Secretary of State’. Initially, mostly British candidates were recruited for these services.
  • The appointing and controlling authority for Provincial services was the respective provincial government, which framed rules for these services with the approval of the Government of India.
  • With the passing of the Indian Act of 1919, the Imperial Services headed by the Secretary of State for India were split into two-All India Services and Central Services.
  • The central services were concerned with matters under the direct control of the Central Government.
  • Apart from the Central Secretariat, the more important of these services were the Railway Services, the Indian Posts and Telegraph Service, and the Imperial Customs Service.
  • For some of these, the Secretary of State used to make appointments but in the great majority of cases, their members were appointed and controlled by the Government of India.

6. Origin of Public Services Commission

  • The origin of the Public Service Commission in India is found in the First Dispatch of the Government of India on the Indian Constitutional Reforms on the 5th March 1919 which referred to the need for setting up some permanent office charged with the regulation of service matters.
  • This concept of a body intended to be charged primarily with the regulation of service matters found a somewhat more practical shape in the Government of India Act, of 1919.
  • Section 96(C) of the Act provided for the establishment in India of a Public Service Commission which should “discharge, in regard to recruitment and control of the Public Services in India, such functions as may be assigned thereto by rules made by the Secretary of State in Council”.
  • After the passing of the Government of India Act, of 1919, in spite of a prolonged correspondence among various levels on the functions and mechanisms of the body to be
    set up, no decision was taken on the setting up of the body.
  • The subject was then referred to the Royal Commission on the Superior Civil Services in India (also known as Lee Commission).
  • The Lee Commission, in their report in the year 1924, recommended that the statutory Public Service Commission contemplated by the Government of India Act, 1919 should be established without delay.
  • Subsequent to the provisions of Section 96(C) of the Government of India Act, 1919 and the strong recommendations made by the Lee Commission in 1924 for the early establishment of a Public Service Commission, it was on October 1, 1926, that the Public Service Commission was set up in India for the first time.
  • It consisted of four Members in addition to the Chairman. Sir Ross Barker, a member of the Home Civil Service of the United Kingdom was the first Chairman of the Commission.
  • The functions of the Public Service Commission were not laid down in the Government of India Act, 1919, but were regulated by the Public Service Commission (Functions) Rules, 1926 framed under sub-section (2) of Section 96(C) of the Government of India Act, 1919.

7. Changes after the Government of India Act, 1935 

  • Further, the Government of India Act, of 1935 envisaged a Public Service Commission for the Federation and a Provincial Public Service Commission for each Province or group of Provinces.
  • Therefore, in terms of the provisions of the Government of India Act, 1935, and with its coming into effect on 1st April 1937, the Public Service Commission became the Federal Public Service Commission.
  • With the inauguration of the Constitution of India on January 26, 1950, the Federal Public Service Commission came to be known as the Union Public Service Commission, and the Chairman and Members of the Federal Public Service Commission became Chairman and Members of the Union Public Service Commission by virtue of Clause (1) of Article 378 of the Constitution.
For Mains: 1. Discuss the historical perspective and evolution of Civil Services in India.
 
Source: upsc.gov.in

FOREIGN CONTRIBUTION 

 
1. Context
 The Central Bureau of Investigation (CBI) has registered an FIR against Oxfam India, and its office-bearers for alleged violation of Foreign Contribution (Regulation) Act (FCRA) registration. The Ministry of Home Affairs (MHA) has found that Oxfam India was allegedly planning to pressure the Indian government for the renewal of FCRA through foreign governments and foreign institutions like the World Bank and the International Monetary Fund (IMF). It also found an email which allegedly showed Oxfam India had been planning to use European Union, US State Department, World Bank, IMF, Asian Development Bank and various European
 

2. About FCRA

  • The FCRA was enacted during the Emergency in 1976 amid apprehensions that foreign powers were interfering in India's affairs by pumping money into the country through independent organisations.
  • These concerns were expressed in Parliament as early as 1969.
  • The law sought to regulate foreign donations to individuals and associations so that they functioned "in a manner consistent with the values of a sovereign democratic republic".
An amended FCRA was enacted under the UPA government in 2010 to "consolidate the law" on the utilisation of foreign funds and "to Prohibit" their use for "any activities detrimental to the national interest".
  • The law was amended again by the current government in 2020, giving the government tighter control and scrutiny over the receipt and utilisation of foreign funds by NGOs.
Broadly, the FCRA requires every person or NGO seeking to receive foreign donations to be 
  1.  Registered under the Act
  2. To open a bank account for the receipt of foreign funds in the State Bank of India, Delhi and 
  3. To utilise those funds only for the purpose for which they have been received and as stipulated in the Act.
  • They are also required to file annual returns and they must not transfer the funds to another NGO.
  • The Act prohibits the receipt of foreign funds by candidates for elections, journalists or newspaper and media broadcast companies, judges and government servants, members of the legislature and political parties or their office-bearers and organisations of a political nature.

2.1. Amendments to the Act

  • In July 2022, the MHA effected changes to FCRA rules through two gazette notifications and increased the number of compoundable offences under the Act from 7 to 12.
  • The other key changes were the exemption from intimation to the government for contributions less than Rs 10 lakh the earlier limit was Rs 1 lakh received from relatives abroad and an increase in the time limit for intimation of the opening of bank accounts.
  • Under the new rules, political parties, legislature members, election candidates, judges, government servants, journalists and media houses among others all barred from receiving foreign contributions will no longer be prosecuted if they receive foreign contributions from relatives abroad and fail to intimate the government within 90 days.
  • However, the recipient will be required to pay 5 per cent of the foreign contribution received.

2.2. FCRA registration

  • NGOs that want to receive foreign funds must apply online in a prescribed format with the required documentation.
  • FCRA registrations are granted to individuals or associations that have definite cultural, economic, educational, religious and social programmes.
  • Following the application by the NGO, the MHA makes inquiries through the Intelligence Bureau into the antecedents of the applicant and accordingly processes the application.
Under the FCRA, the applicant should not be fictitious or benami; and should not have been prosecuted or convicted for indulging in activities aimed at conversion through inducement or force, either directly or indirectly, from one religious faith to another.
  1. The applicant should also not have been prosecuted for or convicted of creating communal tension or disharmony;
  2. Should not have been found guilty of diversion or misutilisation of funds and
  3. should not be engaged or likely to be engaged in the propagation of sedition.
  • The MHA is required to approve or reject the application within 90 days.
  • In case of failure to process the application in the given time, the MHA is expected to inform the NGO of the reasons for the same.

2.3. Duration of the approval

  • Once granted, FCRA registration is valid for five years. NGOs are expected to apply for renewal within six months of the date of ex

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