Why government has tightened FCRA rules, and put religious conversion in focus

📌 Summary:

• The Union Home Ministry has tightened the foreign-funding framework for NGOs under the Foreign Contribution Regulation Act (FCRA) via two notifications revising penalties and registration rules, and explicitly keeping foreign money out of proselytising.

• Purpose + geography linkage: every FCRA registration must now specify both the purposes (chosen from a government Schedule of 105 permissible purposes) and the States/UTs where activities can be undertaken; existing NGOs get one year to indicate their retained purposes and areas, and any expansion needs fresh approval.

• The first notification also broadens the definition of "key functionary", restricts organisations with foreign nationals in key positions, sets a minimum utilisation requirement for renewal/cancellation, tightens release of fund instalments, and mandates wider disclosures (activity reports, social-media details, ultimate donors).

• The second notification revises compounding penalties for violations like excess administrative spending, speculative investment, diversion of funds, and use outside approved purposes/areas.

• Shift in approach: from a broad, programme-based framework (2011 Rules) to a prescriptive regime where activities are picked from an approved list and registration is tied to specific states — significantly increasing government oversight.

• Proselytisation focus: the new Schedule repeatedly says "excluding proselytisation"; faith-based activities (religious education, theological study, gatherings) are allowed but conversion-oriented work is excluded. Backdrop: Article 25 guarantees the right to propagate religion, but the Supreme Court in Rev Stainislaus vs State of MP (1977) held it does not include a right to convert.

🎯 UPSC Relevance: GS2 — regulation of NGOs and foreign funding; transparency vs civil-society space; Article 25 and the right to propagate religion.

📝 Prelims Facts:

• FCRA is administered by the Ministry of Home Affairs; the new Schedule lists 105 permissible purposes.

• Article 25 guarantees freedom to profess, practise and propagate religion.

• In Rev Stainislaus vs State of Madhya Pradesh (1977), the SC held the right to propagate does not include a right to convert.

🔑 Key Term: FCRA — the law regulating the acceptance and utilisation of foreign contributions by individuals and associations to ensure they do not harm national interest.