Q. Consider the following statements regarding the Foreign Contribution (Regulation) Amendment Bill, 2020:
1. It regulates the acceptance and utilization of foreign contribution by individuals, associations and companies.
2. Foreign contribution is the donation or transfer of any currency, security or article by a foreign source.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C
Notes:

The Foreign Contribution (Regulation) Amendment Bill, 2020 was introduced in Lok Sabha on September 20, 2020. The Bill amends the Foreign Contribution (Regulation) Act, 2010.   

  • The Act regulates the acceptance and utilisation of foreign contribution by individuals, associations and companies.  Foreign contribution is the donation or transfer of any currency, security or article (of beyond a specified value) by a foreign source. 
  • Under the Act, certain persons are prohibited to accept any foreign contribution.  These include: election candidates, editor or publisher of a newspaper, judges, government servants, members of any legislature, and political parties, among others.   
  • The Bill adds public servants (as defined under the Indian Penal Code) to this list.   
  • Public servant includes any person who is in service or pays of the government, or remunerated by the government for the performance of any public duty. 

Source: PRSINDIA