Foreign Contribution (Regulation) Act (FCRA)
Indian Polity & Governance
- PYQs28
- Articles5
Background
The Foreign Contribution (Regulation) Act (FCRA) is an Indian law enacted to regulate the acceptance and utilization of foreign contributions or hospitality by individuals, associations, and companies. Administered by the Ministry of Home Affairs (MHA), its primary objective is to ensure that foreign funding does not adversely affect national interest, sovereignty, or public order.
UPSC cares about FCRA due to its critical role in national security, transparency in funding, regulation of civil society, and the balance between state control and fundamental rights. It reflects the government's approach to foreign influence and internal governance.
- Foreign Contribution
- Any donation, delivery, or transfer of any article, currency, or security by a foreign source.
- Foreign Source
- Government of any foreign country, foreign company, foreign trust, foreign citizen, etc.
- Association
- An association of persons, whether incorporated or not, having a definite object.
- Prior Permission
- Required for entities not registered under FCRA but wishing to receive a specific foreign contribution for a specific purpose.
- Registration
- Granted to associations having a definite cultural, economic, educational, religious, or social program, enabling them to receive foreign contributions on a continuing basis.
Facts & tables
Objectives: The FCRA's core objectives include regulating the inflow of foreign funds, ensuring transparency in their utilization, and preventing their diversion for undesirable activities. It seeks to maintain national security and public order by monitoring foreign influence and preventing foreign funding from being used for activities detrimental to India's interests.
Scope and Applicability: The Act applies to individuals, associations, and companies registered or incorporated in India that receive foreign contributions. It covers all forms of foreign contributions, including currency, articles, and securities, and mandates that such contributions must be used for the purpose for which they were received.
- Administering Ministry
- Ministry of Home Affairs (MHA)
- Requirement for Funds
- Mandates registration or prior permission for receiving foreign funds.
- Key Amendment
- FCRA (Amendment) Act, 2020, significantly tightened regulations.
- Designated Bank Account
- Foreign contributions must be received in a designated SBI, New Delhi Main Branch account.
- Fund Transfer Restriction
- Transfer of foreign funds to other entities is prohibited under the 2020 amendment.
- Administrative Expense Cap
- Administrative expenses are capped at 20% of the foreign contribution.
- Aadhaar Mandate
- Aadhaar is mandatory for key office bearers of recipient organizations.
- Consequences of Violation
- Violations can lead to suspension or cancellation of registration and penal action.
| Feature | FCRA 2010 | FCRA 2020 (Amendment) |
|---|---|---|
| Designated Bank Account | Any scheduled bank | Only SBI, New Delhi Main Branch (for initial receipt) |
| Transfer of Funds | Allowed to other FCRA-registered entities | Prohibited (cannot transfer to any other person/entity) |
| Administrative Expenses | Up to 50% of foreign contribution | Reduced to 20% of foreign contribution |
| Aadhaar for Office Bearers | Not mandatory | Mandatory for key functionaries |
| Suspension Period | Up to 180 days | Up to 180 days (can be extended) |
| Surrender of Certificate | Allowed | Allowed, with government inquiry |
| Category | Examples |
|---|---|
| Political Parties & Candidates | Any political party, office-bearer of a political party, candidate for election |
| Public Servants | Judges, government servants, employees of any corporation owned or controlled by the government |
| Media Personnel | Correspondents, columnists, cartoonists, editors, owners, printers or publishers of a registered newspaper |
| Organizations of Political Nature | Any organization declared to be of a political nature by the Central Government |
| Others | Members of any legislature, organizations working for the benefit of a political party |
| Amendment Year | Key Provision |
|---|---|
| Original Act | Regulates foreign contributions to protect national interest. |
| 2020 Amendments | Single bank account, 20% admin limit, no sub-granting. |
| 2026 Bill (Proposed) | Automatic cessation, asset vesting, centralised enforcement. |
| Aspect | Change |
|---|---|
| Purpose & Area of Operation | Must choose from predefined list; specify states/UTs |
| Foreign Nationals as Key Functionaries | Ordinarily not considered; central government exception |
| Proselytisation | Explicitly excluded from several faith-based activities |
| Minimum Spending Limit | Rs 10 lakh over 2 years for renewal/avoiding cancellation |
| Ultimate Donor Disclosure | Mandatory for intermediary remittance vehicles/Donor Advised Funds |
| Prohibited Activities | Cannot produce or broadcast 'news or current affairs' |
| Country | Regulatory Mechanism |
|---|---|
| India | Foreign Contribution (Regulation) Act (FCRA) |
| United States | Foreign Agents Registration Act (FARA) |
| Australia | Comparable regimes |
| European Democracies | Comparable regimes |
| Type | Reference |
|---|---|
| Conceptual area | Welfare Schemes & Social Policies |
| Conceptual area | Indian Polity & Governance |
| Conceptual area | Constitutional & Statutory Bodies |
| Conceptual area | External Sector & Capital Flows |
| Conceptual area | Fundamental Rights |
Prelims angle
Prelims: UPSC Prelims can test factual aspects like the administering ministry, key provisions of the 2020 amendment (e.g., SBI account, administrative expense limit, transfer prohibition, Aadhaar mandate), and categories of prohibited recipients. Questions might also focus on the objectives of the Act, its evolution, and the types of entities it covers.
Mains: For Mains, the FCRA is a critical topic for GS-II (Polity & Governance, Social Justice). Questions could explore the balance between national security and civil liberties, the impact of FCRA amendments on civil society and NGOs, the role of foreign funding in development and advocacy, and the implications for India's international image. Debates around transparency, accountability, and potential misuse of the Act to stifle dissent are common themes. Candidates should be prepared to analyze the government's rationale versus concerns raised by NGOs and international bodies.
- Regulates foreign funding for NGOs in India.
- Administered by Ministry of Home Affairs.
- Aims to protect national interest from adverse foreign influence.
- Often debated for its impact on civil society.
- Recent amendments have tightened regulations.
Check if created by Constitution or by Parliament.
| Year | Framing tags |
|---|---|
| 2026 | Multi-statement analysis, Factual recall |
| 2026 | Multi-statement analysis, Factual recall |
| 2025 | Factual recall, Institutional roles and functions |
| 2025 | Multi-statement analysis, Factual recall |
| 2025 | Multi-statement analysis, Institutional roles and functions |
| 2024 | Multi-statement analysis, Conceptual understanding |
| 2024 | Factual recall, Institutional roles and functions |
| 2024 | Factual recall, Institutional roles and functions |
| 2023 | Multi-statement analysis, Conceptual understanding |
| 2022 | Multi-statement analysis, Factual recall |
| 2021 | Multi-statement analysis, Conceptual understanding |
| 2021 | Statement-based questions, Factual recall |
| 2020 | Multi-statement analysis, Factual recall |
| 2019 | Multi-statement analysis, Factual recall |
| 2019 | Multi-statement analysis, Factual recall |
| 2019 | Factual recall, Definition-based questions |
| 2018 | Multi-statement analysis, Institutional roles and functions |
| 2018 | Multi-statement analysis, Factual recall |
| 2018 | Multi-statement analysis, Factual recall |
| 2017 | Multi-statement analysis, Factual recall |
| 2017 | Multi-statement analysis, Factual recall |
| 2017 | Factual recall, Policy measures |
| 2016 | Institutional roles and functions, Multi-statement analysis |
| 2016 | Multi-statement analysis, Policy measures |
| 2015 | Statement-based questions, Institutional roles and functions |
| 2014 | Factual recall, Institutional roles and functions |
| 2013 | Factual recall, Conceptual understanding |
| 2013 | Factual recall, Institutional roles and functions |
Current affairs
Recent amendments to the FCRA, particularly in 2020, have significantly tightened regulations on foreign funding for NGOs, leading to increased scrutiny and a substantial reduction in the number of active FCRA-registered organizations.
Rationale for Amendments: The government's stated rationale for the 2020 amendments includes enhancing transparency, ensuring accountability, preventing diversion of funds, and safeguarding national interest. It argued that many NGOs were not utilizing funds for the stated purpose or were involved in activities detrimental to the country's security and public order.
Timeline
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Welfare Schemes & Social Policies
Conceptual area
-
Indian Polity & Governance
Conceptual area
-
Constitutional & Statutory Bodies
Conceptual area
-
External Sector & Capital Flows
Conceptual area
-
Prelims 2013
Factual recall, Conceptual understanding
-
Prelims 2013
Factual recall, Institutional roles and functions
-
Prelims 2014
Factual recall, Institutional roles and functions
-
Prelims 2015
Statement-based questions, Institutional roles and functions
-
Prelims 2016
Institutional roles and functions, Multi-statement analysis
-
Prelims 2016
Multi-statement analysis, Policy measures
-
Prelims 2017
Multi-statement analysis, Factual recall
-
Prelims 2017
Multi-statement analysis, Factual recall
-
Prelims 2017
Factual recall, Policy measures
-
Prelims 2018
Multi-statement analysis, Institutional roles and functions
-
Prelims 2018
Multi-statement analysis, Factual recall
-
Prelims 2018
Multi-statement analysis, Factual recall
-
Prelims 2019
Multi-statement analysis, Factual recall
-
Prelims 2019
Multi-statement analysis, Factual recall
-
Prelims 2019
Factual recall, Definition-based questions
-
Prelims 2020
Multi-statement analysis, Factual recall
-
Prelims 2021
Multi-statement analysis, Conceptual understanding
-
Prelims 2021
Statement-based questions, Factual recall
-
Prelims 2022
Multi-statement analysis, Factual recall
-
Prelims 2023
Multi-statement analysis, Conceptual understanding
-
Prelims 2024
Multi-statement analysis, Conceptual understanding
-
Prelims 2024
Factual recall, Institutional roles and functions
-
Prelims 2024
Factual recall, Institutional roles and functions
-
Prelims 2025
Factual recall, Institutional roles and functions
-
Prelims 2025
Multi-statement analysis, Factual recall
-
Prelims 2025
Multi-statement analysis, Institutional roles and functions
-
Prelims 2026
Multi-statement analysis, Factual recall
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Prelims 2026
Multi-statement analysis, Factual recall
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U.S. Secretary of State Marco Rubio arrives in Kolkata, visits Saint Teresa’s Mother House
The Foreign Contribution (Regulation) Act (FCRA) is an Indian law that regulates the acceptance and utilization of foreign contributions by individuals, associations, and companies. Administered by the Ministry of Home Affairs, its primary objective is to prevent foreign funding from adversely affecting national interest.
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FCRA Bill — expanding state control over civil society
The FCRA is a statutory law regulating foreign funding to Indian entities. Recent amendments (2020) and proposed changes (2026 Bill) have significantly tightened controls, introducing provisions like automatic registration cessation and government vesting of assets, raising concerns about executive overreach and the survival of civil society organisations.
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Centre amends rules for receiving foreign funds
The FCRA is a key Indian law regulating foreign contributions to individuals and associations, aiming to prevent adverse impacts on national interest. Recent amendments have tightened rules on purpose, area of operation, foreign nationals as functionaries, spending limits, and disclosure requirements for NGOs.
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Building an Atmanirbhar philanthropy ecosystem
FCRA regulates foreign funding to Indian entities to protect national interest. Recent debates focus on its proportionality and administrative efficiency, with calls for better, risk-based regulation.
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Government allays fears over FCRA Bill, clarifies on designated authority
The FCRA is a statutory law regulating foreign contributions to Indian entities, aiming to safeguard national interest. Recent amendments, including the creation of a 'designated authority', enhance state oversight over foreign-funded organizations, impacting civil society's autonomy and operations.
See also
Dashed boxes: related topics without a notes page yet. Tap a solid box to open notes.
Past papers
2013–2026 · 28 questions
In the news
FCRA Bill — expanding state control over civil society
The FCRA is a statutory law regulating foreign funding to Indian entities. Recent amendments (2020) and proposed changes (2026 Bill) have significantly tightened controls, introducing provisions like automatic registration cessation and government vesting of assets, raising concerns about executive overreach and the survival of civil society organisations.
Government allays fears over FCRA Bill, clarifies on designated authority
The FCRA is a statutory law regulating foreign contributions to Indian entities, aiming to safeguard national interest. Recent amendments, including the creation of a 'designated authority', enhance state oversight over foreign-funded organizations, impacting civil society's autonomy and operations.
Centre amends rules for receiving foreign funds
The FCRA is a key Indian law regulating foreign contributions to individuals and associations, aiming to prevent adverse impacts on national interest. Recent amendments have tightened rules on purpose, area of operation, foreign nationals as functionaries, spending limits, and disclosure requirements for NGOs.
Building an Atmanirbhar philanthropy ecosystem
FCRA regulates foreign funding to Indian entities to protect national interest. Recent debates focus on its proportionality and administrative efficiency, with calls for better, risk-based regulation.
U.S. Secretary of State Marco Rubio arrives in Kolkata, visits Saint Teresa’s Mother House
The Foreign Contribution (Regulation) Act (FCRA) is an Indian law that regulates the acceptance and utilization of foreign contributions by individuals, associations, and companies. Administered by the Ministry of Home Affairs, its primary objective is to prevent foreign funding from adversely affecting national interest.
Try these PYQs
With reference to the Government of India, consider the following information:
| Organization | Some of its Functions | It Works Under |
|--------------------|------------------------|--------------------------------|
| Directorate of Enforcement | Enforcement of the Fugitive Economic Offenders Act, 2018 | Internal Security Division-I, Ministry of Home Affairs |
| Directorate of Revenue Intelligence | Enforces the provisions of the Customs Act, 1962 | Department of Revenue, Ministry of Finance |
| Directorate General of Systems and Data Management | Carrying out big data analytics to assist tax officers for better policy and nabbing tax evaders | Department of Revenue, Ministry of Finance |
In how many of the above rows is the information correctly matched?
The question relates to the correct mapping of key investigative and analytical bodies under the Government of India and their parent ministries or departments. ❌ Row I: Incorrect The Directorate of Enforcement does implement the Fugitive Economic Offenders Act, 2018, but it functions under the Department of Revenue, Ministry of Finance, not the Ministry of Home Affairs. ✅ Row II: Correct The Directorate of Revenue Intelligence (DRI) enforces the Customs Act, 1962 and works under the Department of Revenue, Ministry of Finance. ✅ Row III: Correct The Directorate General of Systems and Data Management aids in big data analytics for tax enforcement and operates under the Department of Revenue, Ministry of Finance.
With reference to the provisions made under the National Food Security Act, 2013 consider the following statements:
1. The families coming under the category of 'below poverty line (BPL)' only are eligible to receive subsidised grains.
2. The eldest woman in a household, of age 18 years or above, shall be the head of the household for the purpose of issuance of a ration card.
3. Pregnant women and lactating mothers are entitled to a take-home ration' of 1600 calories per day during pregnancy and for six months thereafter.
Which of the statements given above is/are correct?
Statement 1 is incorrect: In 2013, NFSA was enacted to provide food security to 67% of the population in the form of highly subsidized food grains at Rs. 2 and 3 per Kg for wheat and rice respectively. Beneficiaries are identified using Socio-economic Caste Census (SECC) methodology so even non-BPL will also benefit. Statement 2 is correct: Under the NFSA, to issue ration cards the eldest woman of a household aged 18 years or above would be considered as head. Hence, this statement is correct. Statement 3 is incorrect: Pregnant women and lactating mothers are entitled to a nutritious take home ration of 600 Calories and a maternity benefit of at least Rs 6,000 for six months, says the official act.
The North Eastern Council (NEC) was established by the North Eastern Council Act, 1971. Subsequent to the amendment of NEC Act in 2002, the Council comprises which of the following members?
1. Governor of the Constituent State
2. Chief Minister of the Constituent State
3. Three Members to be nominated by the President of India
4. The Home Minister of India
Select the correct answer using the code given below :
The North Eastern Council (NEC) was established under the *North Eastern Council Act, 1971* to ensure the balanced and coordinated development of the North Eastern Region. After the North Eastern Council (Amendment) Act, 2002, the structure and composition of the Council were modified. As per Section 3(1) of the *NEC Act, 1971 (as amended)*, the Council shall consist of the following members: 1. The Chief Ministers of the Constituent States
2. The Governors of the Constituent States
3. Three Members to be nominated by the President of India These are the only members of the Council as defined by the Act. Further, Section 3(2) specifies that:
“The Union Home Minister shall be the ex officio Chairman of the Council, and the Minister of the Central Government in charge of the Ministry of Development of North Eastern Region (DoNER) shall be the ex officio Vice-Chairman of the Council.” Thus, while the Union Home Minister serves as the ex officio Chairman, he does not form part of the Council as a member under Section 3(1). Similarly, the Minister of DoNER is the ex officio Vice-Chairman, but not a member of the Council.
How is the National Green Tribunal (NGT) different from the Central Pollution Control Board (CPCB)?
1. The NGT has been established by an Act whereas the CPCB has been created by executive order of the Government.
2. The NGT provides environmental justice and helps reduce the burden of litigation in the higher courts whereas the CPCB promotes cleanliness of streams and wells, and aims to improve the quality of air in the country.
Which of the statements given above is/are correct
Statement 1 is incorrect: The National Green Tribunal (NGT) was established under the National Green Tribunal Act, 2010, passed by Parliament, making it a statutory body. Similarly, the Central Pollution Control Board (CPCB) was constituted under the Water (Prevention and Control of Pollution) Act, 1974 and is also a statutory body. It plays a key role in environmental regulation in India. Statement 2 is correct: The NGT’s primary role is to ensure the expeditious disposal of environmental cases related to forest conservation, natural resource protection, and pollution control, thereby reducing the burden on higher courts. The CPCB, functioning under the Ministry of Environment, Forest and Climate Change (MoEFCC), is responsible for monitoring water and air quality, implementing pollution control measures, and enforcing environmental laws to promote a cleaner environment. Thus, while both bodies deal with environmental protection, the NGT focuses on adjudication, whereas the CPCB handles regulatory and enforcement functions.
Therefore, the correct answer is option (b) 2 only.
Which of the following statements with regard to the persons with disabilities in India is/are correct ?
1. The Rights of Persons with Disabilities Act, an Act passed by the Parliament of India in 2018, mandates reservation in education and employment, places a legal duty on Governments to ensure accessibility and non-discrimination.
2. The Sugamya Bharat Abhiyan focuses on achieving universal accessibility for Persons with Disabilities across three key domains — built infrastructure, transport systems and information and communication technology.
3. The National Divyangjan Finance and Development Corporation (NDFDC) is a public sector organisation set up by the Ministry of Corporate Affairs as a not-for-profit company to promote entrepreneurship among Persons with Disabilities (PwDs).
Select the answer using the code given below :
Statement 1 is Incorrect: The Rights of Persons with Disabilities (RPwD) Act was passed by the Parliament of India in 2016, not 2018. It aligns with the UN Convention on the Rights of Persons with Disabilities and places a legal obligation on governments to ensure non-discrimination and accessibility. It also mandates reservations for PwDs, such as increasing the quota to 4% in government employment and 5% in higher education. Statement 2 is Correct: The Sugamya Bharat Abhiyan (Accessible India Campaign) was launched in 2015 by the Department of Empowerment of Persons with Disabilities (DEPwD). It focuses on achieving universal accessibility for Persons with Disabilities across three key domains: built infrastructure (barrier-free public buildings), transport systems (accessible railways, airports, and roads), and information and communication technology (accessible government websites and digital ecosystems). Statement 3 is Incorrect: The National Divyangjan Finance and Development Corporation (NDFDC) is a Central Public Sector Undertaking registered as a not-for-profit company to provide concessional financial assistance to promote entrepreneurship, self-employment, and higher education among PwDs. However, it was set up under the aegis of the Ministry of Social Justice and Empowerment, not the Ministry of Corporate Affairs. Therefore, the correct option is B.
Show 23 more PYQs
Consider the following statements:
1. The Election Commission of India is a five-member body.
2. Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and by-elections.
3. Election Commission resolves the disputes relating to splits/mergers of recognized political parties.
Which of the statements given above is/are correct?
Statement 1 is incorrect: The Election Commission of India (ECI) is not a five-member body. It is a three-member body, consisting of the Chief Election Commissioner (CEC) and two Election Commissioners (ECs). However, it originally started as a single-member body in 1950 and became a multi-member commission in 1993. Statement 2 is incorrect: The Union Ministry of Home Affairs (MHA) does not decide the election schedule. The Election Commission of India (ECI) is solely responsible for determining the schedule of general elections and bye-elections. It exercises this power under Article 324 of the Constitution, ensuring free and fair elections in the country. Statement 3 is correct: The Election Commission of India has the authority to resolve disputes related to splits and mergers of recognized political parties. It decides which faction of a party is the legitimate one and, if necessary, allocates party symbols accordingly, based on precedents and internal party strength. Hence, the correct answer is option (D) 3 only.
Consider the following statements:
1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in public interest.
3. The Governor of the RBI draws his power from the RBI Act.
Which of the above statements are correct?
Statement 1 is correct. The Governor of RBI is appointed by the Central Government under the RBI Act, 1934. The Appointments Committee of the Cabinet (ACC), led by the Prime Minister, finalizes the selection. The tenure is typically four years, but the government has the authority to extend or terminate the term. Statement 2 is incorrect. The Constitution of India does not have any direct provision allowing the Central Government to issue directions to the RBI. However, Section 7 of the RBI Act, 1934, gives the Central Government the power to issue directions to the RBI in the public interest, but this is a statutory provision, not a constitutional one. Statement 3 is correct. The powers, functions, and responsibilities of the RBI Governor come from the Reserve Bank of India Act, 1934. The Act defines the Governor's role, monetary policy responsibilities, and overall authority over banking regulations.
Consider the following statements :
1. As per the Right to Education (RTE) Act, to be eligible for appointment as a teacher in a State, a person would be required to possess the minimum qualifications laid down by the concerned State Council of Teacher Education.
2. As per the RTE Act, for teaching primary classes, a candidate is required to pass a Teacher Eligibility Test conducted in accordance with the National Council of Teacher Education guidelines.
3. In India, more than 90% of teacher education institutions are directly under the State Governments.
Which of the statements given above is/are correct?
Statement 1 is incorrect: As per the RTE Act, the minimum qualification for teachers is set by the National Council for Teacher Education (NCTE), not the state council. Statement 2 is correct: The RTE Act mandates that candidates must pass the Teacher Eligibility Test (TET) to qualify for teaching primary classes. The NCTE sets the guidelines for conducting this test. Statement 3 is incorrect: According to the All India Survey on Higher Education (AISHE) 2019-20, approximately 67% of teacher education institutions in India are privately managed, while only around 33% are government-run. Hence, the correct answer is option (b) 2 only.
Consider the following statements :
1. According to the Indian Patents Act, a biological process to create a seed can be patented in India.
2. In India, there is no Intellectual Property Appellate Board.
3. Plant varieties are not eligible to be patented in India.
Which of the statements given above is/are correct?
Statement 1 is incorrect. According to the Indian Patents Act (specifically Section 3(j)), biological processes for the production or propagation of plants and animals are not eligible for patents. This means creating a seed through a biological process cannot be patented. Statement 2 is incorrect. The Intellectual Property Appellate Board (IPAB) was established in India in 2003. It deals with appeals against decisions of the patent office and trademark registry. Statement 3 is correct. Plant varieties themselves are not patentable in India. However, the Protection of Plant Varieties and Farmers' Rights Act (PPVFR Act) provides a system for protecting the rights of plant breeders by granting them exclusive rights to sell propagating material of new varieties. _Note: the Tribunal Reforms Act, 2021 abolished various Tribunals including India's Intellectual Property Appellate Board (IPAB) and assigned their functions to the country's Commercial Courts and High Courts. However, UPSC asked this question in 2019 when an Appellate Board existed for intellectual property. Therefore correct answer is 3 only._
With reference to ‘Urban Cooperative Banks’ in India, consider the following statements:
1. They are supervised and regulated by local boards set up by the State Governments.
2. They can issue equity shares and preference shares.
3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.
Which of the statements given above is/are correct?
Statement 1 is incorrect. Urban Cooperative Banks (UCBs) are not solely regulated by State Governments. They are jointly regulated by the Reserve Bank of India (RBI) and the respective State Governments. In 2020, the Banking Regulation (Amendment) Act, 2020 gave RBI more control over UCBs, bringing them largely under its regulatory framework for financial stability. Statement 2 is correct. As per the Banking Regulation (Amendment) Act, 2020, Urban Cooperative Banks can raise funds by issuing equity shares, preference shares, and unsecured debentures with RBI approval. This allows UCBs to strengthen their capital base and improve financial health. Statement 3 is correct. Initially, cooperative banks were regulated under state laws. In 1966, an amendment to the Banking Regulation Act, 1949, brought Urban Cooperative Banks (UCBs) under RBI's purview for banking-related functions. However, their management and administrative aspects remained under state cooperative laws.
With reference to the ‘Prohibition of Benami Property Transactions Act, 1988 (PBPT Act) consider the following statements:
1. A property transaction is not treated as a benami transaction if the owner of the property is not aware of the transaction.
2. Properties held benami are liable for confiscation by the Government.
3. The Act provides for three authorities for investigations but does not provide for any appellate mechanism.
Which of the statements given above is/are correct?
Statement 1 is Incorrect: Whether the owner is aware or not isn't the sole factor. A property transaction can be considered benami if
* The property is transferred to one person (benamidar) for a consideration paid by another (real owner).
* The transaction is conducted in a fictitious name. Statement 2 is Correct: Properties held benami are indeed liable for confiscation by the Central Government. This discourages the practice of using benami transactions to hide ownership. Statement 3 is Incorrect: The PBPT Act does provide for an appellate mechanism. Here's the hierarchy. The Adjudicating Authority Investigates and decides on benami transactions initially.
Appellate Tribunal Parties aggrieved by the Adjudicating Authority's decision can appeal to this tribunal. Therefore, the correct answer is 2 only.Hence, option B is the correct answer.
Under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, who shall be the authority to initiate the process for determining the nature and extent of individual or community forest rights or both?
Under the Forest Rights Act, 2006, the Gram Sabha has been assigned to initiate the process for determining the nature and extent of individual or community forest rights or both that may be given.
With reference to the funds under Members of Parliament Local Area Development Scheme (MPLADS), which of the following statements are correct?
1. MPLADS funds must be used to create durable assets like physical infrastructure for health, education, etc.
2. A specified portion of each MP’s fund must benefit SC/ST populations
3. MPLADS funds are sanctioned on yearly basis and the unused funds cannot be carried forward to the next years
4. The district authority must inspect at least 10% of all works under implementation every year
Statement 1 is correct: The MPLAD scheme lets MPs recommend works for local infrastructure and development needs in their constituency. The focus is on creating durable assets that benefit the community. Certain works are prohibited under MPLAD guidelines, which MPs must follow. Statement 2 is correct: The scheme requires MPs to allocate at least 15% of the MPLADS entitlement for the year to areas inhabited by the Scheduled Caste population and 7.5% for areas inhabited by the Scheduled Tribe population. If there are insufficient tribal populations in the MP's constituency, they can recommend this amount for the creation of community assets in tribal areas outside their constituency, but within their State of election. If a state does not have Scheduled Tribe inhabited areas, this amount can be utilized in Scheduled Caste areas. Statement 3 is incorrect: Funds released to the District Authority by the Government of India under the MPLAD scheme are non-lapsable, meaning that funds left in the district can be carried forward and utilized in subsequent years. Statement 4 is correct: The District Authority is responsible for coordinating and supervising the works under the scheme at the district level. They also inspect at least 10% of the works under implementation every year. Based on the above information, the correct answer is (d).
The Government enacted the Panchayat Extension to Scheduled Areas (PESA) Act in 1996. Which one of the following is not identified as its objective?
* PESA doesn't deal with the creation of autonomous regions in tribal areas. * The Sixth Schedule provides for the administration of certain tribal areas as autonomous entities. The provisions of the sixth schedule are provided under Articles 244(2) and 275(1) of the Indian Constitution.
With reference to India, consider the following pairs:
| Organization | Union Ministry |
|------------------------------------------|-------------------------------------------------|
| I. The National Automotive Board | Ministry of Commerce and Industry |
| II. The Coir Board | Ministry of Heavy Industries |
| III. The National Centre for Trade Information| Ministry of Micro, Small and Medium Enterprises |
How many of the above pairs are correctly matched?
❌ Pair I: The National Automotive Board – Ministry of Commerce and Industry
* Incorrect. It functions under the Ministry of Heavy Industries, not Commerce and Industry. ❌ Pair II: The Coir Board – Ministry of Heavy Industries
* Incorrect. The Coir Board is under the Ministry of Micro, Small and Medium Enterprises. ❌ Pair III: National Centre for Trade Information – Ministry of MSME
* Incorrect. NCTI is linked to the Ministry of Commerce and Industry, not MSME.
Which of the following statements with respect to the Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) is/are correct ?
1. The period of its implementation is 1st April, 2021 to 31st March, 2026.
2. The key objective of the Revamped RGSA is to develop the governance capabilities of the Panchayati Raj Institutions to deliver on the Sustainable Development Goals.
3. The share of the Central funding for the Revamped RGSA is 100% for all States and Union Territories.
Select the answer using the code given below :
Statement 1 is Incorrect: The Revamped Rashtriya Gram Swaraj Abhiyan (RGSA) was approved by the Cabinet Committee on Economic Affairs for implementation from 1st April 2022 to 31st March 2026 (co-terminus with the 15th Finance Commission period), not from 1st April 2021. Statement 2 is Correct: The primary objective of the revamped scheme is to develop and enhance the governance capabilities of Panchayati Raj Institutions (PRIs) so they can effectively deliver on the Sustainable Development Goals (SDGs). It focuses on the localization of SDGs at the grassroots level through inclusive local governance. Statement 3 is Incorrect: The Revamped RGSA is a Centrally Sponsored Scheme, meaning the funding is shared between the Centre and the States. It is not 100% centrally funded for all States and UTs. The sharing pattern is 60:40 (Centre:State) for general category States, and 90:10 for North-Eastern States, Hilly States, and the Union Territory of Jammu & Kashmir. 100% Central funding applies only to other Union Territories and specific Central components of the scheme. Therefore, option B is the correct answer.
Which of the following are associated with ‘Planning’ in India?
1. The Finance Commission
2. The National Development Council
3. The Union Ministry of Rural Development
4. The Union Ministry of Urban Development
5. The Parliament
Select the correct answer using the code given below.
1. Finance Commission: Deals with the distribution of tax revenue between the central government and states, not overall national planning. 2. National Development Council (NDC): This was the apex body for planning at the national level. It is used to formulate and review India's five-year plans. 3. Union Ministry of Rural Development: Implements specific development schemes related to rural areas, not national-level planning. 4. Union Ministry of Urban Development: Implements specific development schemes related to urban areas, not national-level planning. 5. Parliament: While not directly involved in day-to-day planning, the Parliament is used to approve the five-year plans formulated by the NDC. Additionally, Members of Parliament (MPs) can utilize funds allocated for their constituencies through MPLADS (Member of Parliament Local Area Development Scheme), which contributes to local-level planning.
With reference to the Indian Parliament, consider the following statements:
1. A bill pending in the Lok Sabha lapses on its dissolution.
2. A bill passed by the Lok Sabha and pending in the Rajya Sabha lapses on the dissolution of the Lok Sabha.
3. A bill in regard to which the President of India notified his/her intention to summon the Houses to a joint sitting lapses on the dissolution of the Lok Sabha.
Which of the statements given above is/are correct?
* Statement 1: Correct. When the Lok Sabha is dissolved, any bill pending in the Lok Sabha automatically lapses. This is because the dissolution of the Lok Sabha ends its session, and all legislative business in progress becomes void. * Statement 2: Correct. If a bill has been passed by the Lok Sabha but is pending in the Rajya Sabha, it lapses upon the dissolution of the Lok Sabha. This is true even if the Rajya Sabha has not yet acted on the bill. * Statement 3: Incorrect. A bill regarding which the President has notified a joint sitting will not lapse on the dissolution of the Lok Sabha. It can be taken up in the next session after the Lok Sabha is reconstituted. A joint sitting is called only when there is a deadlock between the Lok Sabha and Rajya Sabha.
Consider the following statements:
1. The Rajya Sabha has no power either to reject or to amend a Money Bill.
2. The Rajya Sabha cannot vote on the Demands for Grants.
3. The Rajya Sabha cannot discuss the Annual Financial Statement.
Which of the statements given above is/are correct?
Statement 1 is correct: The Rajya Sabha has no power either to reject or to amend a Money Bill. This is a provision under Article 110 of the Indian Constitution. Statement 2 is correct. The Rajya Sabha cannot vote on the Demands for Grants. This is the exclusive privilege of the Lok Sabha. Statement 3 is incorrect. The Rajya Sabha can discuss the Annual Financial Statement (Budget), but it does not have the power to vote on the demands for grants. This is also the exclusive privilege of the Lok Sabha.
With reference to Finance Bill and Money Bill in the Indian Parliament consider the following statements:
1. When the Lok Sabha transmits Finance Bill to the Rajya Sabha, it can amend or reject the Bill.
2. When the Lok Sabha transmits Money Bill to the Rajya Sabha, it cannot amend or reject the Bill, it can only make recommendations.
3. In the case of disagreement between the Lok Sabha and the Rajya Sabha, there is no joint sitting for Money Bill, but a joint sitting becomes necessary for Finance Bill.
How many of the above statements are correct?
Statement 1 is correct: While a Finance Bill (Category I under Art 117) is introduced only in the Lok Sabha (similar to a Money Bill), it is passed according to the ordinary legislative procedure. Therefore, the Rajya Sabha has the power to reject or amend it. Statement 2 is correct: A Money Bill (Article 110) cannot be rejected or amended by the Rajya Sabha. It can only make recommendations which the Lok Sabha may accept or reject. Statement 3 is incorrect: While a Joint Sitting is not provided for Money Bills, it is available for Finance Bills. However, it is not "necessary" (mandatory) to hold one. Under Article 108, the President "may" summon a Joint Sitting to resolve the deadlock, but is not obliged to do so; the bill could simply be allowed to lapse.
With reference to the "Tea Board" in India, consider the following statements:
1. The Tea Board is a statutory body.
2. It is a regulatory body attached to the Ministry of Agriculture and Farmers Welfare.
3. The Tea Board's Head Office is situated in Bengaluru.
4. The Board has overseas offices at Dubai and Moscow.
Which of the statements given above are correct?
Statement 1 is correct: The Tea Board of India is a statutory body created under the Tea Act, 1953 and it was established to regulate the Indian tea industry and protect the interests of tea producers in India. Statement 2 is incorrect: It is functioning as a statutory body of the Central Government under the Ministry of Commerce. Statement 3 is incorrect: The Tea Board of India's Head Office is situated in Kolkata. Statement 4 is correct: The Tea Board of India has overseas offices in Moscow, Dubai, Hamburg, London, and New York.
Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?
Participatory Note (P-Note): This is a financial instrument issued by registered foreign portfolio investors (FPIs) to overseas investors. It allows overseas investors to participate in the Indian stock market indirectly without directly registering with the Securities and Exchange Board of India (SEBI). The FPI holds the underlying Indian securities, and the P-Note represents ownership for the overseas investor. The other options are not used for this purpose: Certificate of Deposit (CD): Issued by banks to raise short-term funds, not related to stock markets. Commercial Paper (CP): Short-term debt instrument issued by companies, not related to foreign investment in stocks. Promissory Note: A written promise to repay a debt, not used in this context of stock market participation.
What is/are the purpose of ‘District Mineral Foundations” in India?
1. Promoting mineral explorative activities in mineral-rich districts
2. Protecting the interests of the persons affected by mining operations
3. Authorizing State Governments to issue licenses for mineral exploration
Select the correct answer using the code given below:
District Mineral Foundations (DMFs) were established in India under the Mines and Minerals (Development and Regulation) Amendment Act, 2015. Statement 1 is Incorrect: Promoting mineral exploration activities in mineral-rich districts is not a stated objective of DMFs. Statement 2 is Correct: The primary purpose of DMFs is to work for the welfare and benefit of areas and individuals affected by mining-related operations. This includes protecting the interests of the persons affected by mining operations. Statement 3 is Incorrect: However, DMFs do not have the authority to issue licenses for mineral exploration, as this is the responsibility of the State Governments. Their focus is more on the welfare of the affected persons and areas. Hence, option B is the correct answer.
With reference to ‘Initiative for Nutritional Security through Intensive Millets Promotion’, which of the following statements is/are correct?
1. This initiative aims to demonstrate the improved production and post-harvest technologies and to demonstrate value addition techniques, in an integrated manner, with a cluster approach.
2. Poor, small, marginal and tribal farmers have a larger stake in this scheme.
3. An important objective of the scheme is to encourage farmers of commercial crops to shift to millet cultivation by offering them free kits of critical inputs of nutrients and micro-irrigation equipment.
Select the correct answer using the code given below.
Statement 1 is correct. The Initiative for Nutritional Security through Intensive Millets Promotion aims to demonstrate improved production and post-harvest technologies in an integrated manner with a cluster approach. Statement 2 is also correct. Millets are mainly grown in regions of low annual rainfall and poor arid soil. It is inadequate, small, marginal and tribal farmers, who cannot afford costly irrigation practices, depend on the cultivation of millets. Hence these farmers benefit from the scheme and have a larger stake in this scheme. Statement 3 is not correct. There is no such provision to encourage commercial crop farmers to shift to millet cultivation.
With reference to India, consider the following:
I. The Inter-State Council
II. The National Security Council
III. Zonal Councils
How many of the above were established as per the provisions of the Constitution of India?
Among the listed bodies, only the Inter-State Council is established by the Constitution of India. The others are based on statutory or executive provisions. ✅ I. Inter-State Council – Correct
* Established under Article 263 of the Constitution to facilitate Centre-State coordination. ❌ II. National Security Council – Incorrect
* Formed in 1998 by an executive order, not mentioned in the Constitution. ❌ III. Zonal Councils – Incorrect
* Established under the States Reorganisation Act, 1956, a statutory but non-constitutional body.
Who among the following can join the National Pension System (NPS)?
The Central Government introduced the National Pension System (NPS) with effect from January 1, 2004 (except for armed forces). Subsequently, various State Governments adopted this architecture and implemented NPS with effect from different dates. Eligibility to join
- Any citizen of India, whether resident or non-resident, subject to the following conditions.
- Individuals who are aged between 18 60 years, including NRIs.
- After attaining 60 years of age, you will not be permitted to make further contributions to the NPS accounts
Consider the following statements :
1. Petroleum and Natural Gas Regulatory Board (PNGRB) is the first regulatory body set up by the Government of India.
2. One of the tasks of PNGRB is to ensure competitive markets for gas.
3. Appeals against the decisions of PNGRB go before the Appellate Tribunals for Electricity.
Which of the statements given above are correct?
Statement 1 is Incorrect: The Petroleum and Natural Gas Regulatory Board (PNGRB) was constituted under the Petroleum and Natural Gas Regulatory Board Act, 2006.
The independent regulator, Telecom Regulatory Authority of India (TRAI), set up under the TRAI Act of 1997, was the first independent regulator in India. Hence, statement 1 is not correct. Statement 2 is correct: PNGRB is tasked to protect the interests of consumers and entities engaged in specified activities relating to petroleum, petroleum products and natural gas and to promote competitive markets and for matters connected therewith or incidental thereto. Statement 3 is correct: The Appellate Tribunal established under Section 110 of the Electricity Act, 2003 (Central Act 36 of 2003) shall be the Appellate Tribunal to appeal against the decisions of the PNGRB.
Who was the Provisional President of the Constituent Assembly before Dr. Rajendra Prasad took over?
Dr. Sachchidananda Sinha was elected as the Provisional President of the Constituent Assembly on December 9, 1946. This was a temporary position. He served as the Chairman for two days, after which Dr. Rajendra Prasad was elected as the President of the Constituent Assembly on December 11, 1946. Here's why the other options are incorrect: * C. Rajagopalachari: He was the last Governor-General of India and played a significant role in the Indian independence movement. * Dr. B.R. Ambedkar: He was the Chairman of the Drafting Committee of the Constitution. * T.T. Krishnamachari: He was a prominent member of the Constituent Assembly and later served as the Finance Minister of India.