Consider the following statements regarding International best practices in NGO regulation and governance standards:
1. The 1951 Convention Relating to the Status of Refugees provides for the legal incorporation of humanitarian NGOs, and the 1967 Protocol expands this to include administrative oversight.
2. The 1996 European Convention on the Recognition of the Legal Personality of International Non-Governmental Organizations provides for the mutual recognition of NGO status across signatory states.
3. The Financial Action Task Force (FATF) Recommendation 8, revised in 2016, focuses on protecting non-profit organizations from terrorist financing abuse through a risk-based approach.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 3 is correct. Statement 1 is incorrect.
Statement 1 is incorrect because the 1951 Refugee Convention and its 1967 Protocol focus on the rights of refugees and the obligations of states, not the legal incorporation or administrative oversight of NGOs. Statement 2 is correct as the 1986 European Convention (ETS No. 124) establishes a framework for the mutual recognition of the legal personality of INGOs across Council of Europe member states. Statement 3 is correct because FATF Recommendation 8, revised in 2016, mandates that countries apply a risk-based approach to ensure that non-profit organizations are not misused by terrorist organizations for financing or recruitment.
Consider the following statements regarding Ethical challenges and governance issues in NGO-led social entrepreneurship:
1. The 2012 National Skill Development Policy encourages NGOs to function as autonomous training partners, allowing them to certify their own vocational courses without seeking validation from the National Council for Vocational Training.
2. The 2014 Companies Act introduced Section 135, which formalizes the Corporate Social Responsibility framework and influences the operational models of many NGO-led social enterprises in India.
3. Under the NITI Aayog's NGO-DARPAN portal, organizations are assigned a unique identification number to track their financial transactions and project implementation status across various government ministries.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 3 is correct. Statement 1 is incorrect.
Statement 1 is incorrect because the National Skill Development Policy mandates that all vocational training certifications must be validated by the National Council for Vocational Training (NCVT) or relevant Sector Skill Councils to ensure quality and standardization. Statement 2 is correct as Section 135 of the Companies Act, 2013 (effective from 2014) mandates CSR expenditure for eligible companies, significantly shaping the funding and operational landscape for social enterprises. Statement 3 is correct because the NGO-DARPAN portal, managed by NITI Aayog, serves as a single-point interface to generate a Unique ID for NGOs, facilitating transparency and monitoring of their engagement with various government ministries.
Consider the following statements regarding NGOs as watchdogs in environmental governance and climate policy:
1. The Intergovernmental Panel on Climate Change (IPCC) Fifth Assessment Report of 2014 includes provisions for NGOs to directly submit independent climate data for inclusion in the final Summary for Policymakers.
2. The 2010 Nagoya Protocol on Access and Benefit-sharing provides a mechanism for NGOs to oversee the legal implementation of traditional knowledge protection in signatory states.
3. The 1987 Montreal Protocol on Substances that Deplete the Ozone Layer includes a clause that permits NGOs to participate in the Multilateral Fund executive committee meetings as observers with veto power.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
All three statements are incorrect because NGOs do not possess the powers described: the IPCC relies on peer-reviewed scientific literature rather than direct data submissions from NGOs for its Summary for Policymakers; the Nagoya Protocol facilitates the participation of indigenous and local communities but does not grant NGOs formal legal oversight powers over state implementation; and while NGOs attend Montreal Protocol meetings as observers, they have absolutely no voting rights or veto power within the Multilateral Fund executive committee.
Consider the following statements regarding Corporate Social Responsibility (CSR) and the role of NGOs as implementing agencies:
1. The Companies Act 2013 refers to the role of the Board of Directors in CSR governance, and the 2017 notification permits the carry-forward of unspent CSR funds into the subsequent three financial years for ongoing projects.
2. The 2013 legislation includes provisions for CSR committees to oversee project implementation, and the 2016 amendment permits companies to claim tax deductions on CSR expenditure under Section 35AC of the Income Tax Act.
3. The CSR framework encompasses the role of international NGOs in local development, and the 2020 Foreign Contribution Regulation Act amendment allows these entities to receive CSR funds directly from domestic corporate subsidiaries.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the 2020 amendment, not 2017, introduced the carry-forward provision for ongoing projects. Statement 2 is incorrect as the 2013 Act does not allow tax deductions for CSR expenditure, and the Finance Act 2014 explicitly clarified that CSR spending is not eligible for tax benefits under the Income Tax Act. Statement 3 is incorrect because the FCRA 2020 amendment actually tightened regulations, prohibiting the sub-granting of foreign contributions and restricting the receipt of foreign funds by NGOs, rather than facilitating the flow of CSR funds from domestic subsidiaries.
Consider the following statements regarding Role of NGOs in last-mile delivery of government welfare schemes:
1. The 2013 Companies Act introduced Corporate Social Responsibility provisions for large firms, and the 2014 notification permitted these firms to count contributions to foreign-registered NGOs toward their mandatory spending targets.
2. Under the 'NGO-DARPAN' portal launched by NITI Aayog in 2015, NGOs are required to provide their Aadhaar and PAN details to enhance transparency in the receipt of government grants.
3. The Foreign Contribution (Regulation) Amendment Act, 2020, introduced a provision requiring NGOs to receive foreign funds only through a designated bank account at the State Bank of India, New Delhi branch.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 3 is correct. Statement 1 is incorrect.
Statement 1 is incorrect because the 2014 notification under the Companies Act explicitly prohibits CSR contributions to foreign-registered NGOs, requiring them to be registered in India. Statement 2 is correct as the NGO-DARPAN portal, launched by NITI Aayog, mandates NGOs to link their Aadhaar and PAN details to ensure financial transparency and accountability for government grants. Statement 3 is correct because the FCRA Amendment Act, 2020, mandates that all foreign contributions must be received exclusively in a designated 'FCRA account' opened at the State Bank of India, New Delhi Main Branch.
Consider the following statements regarding Public accountability of NGOs receiving government grants-in-aid:
1. The Foreign Contribution (Regulation) Act of 2010 provides for the renewal of registration certificates every five years, and the 2015 notification extended this validity period to ten years for organizations with a clean track record.
2. The Societies Registration Act of 1860 governs the financial reporting of non-profits, and the 1991 liberalization reforms removed the requirement for annual filing of balance sheets with the Registrar of Societies.
3. The Public Accounts Committee of Parliament maintains the oversight of the Prime Minister's National Relief Fund, and the 2005 audit guidelines allow for the direct transfer of these funds to international NGOs.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the FCRA 2010 requires renewal every five years, and the 2020 amendment actually tightened compliance rather than extending validity to ten years. Statement 2 is incorrect as the Societies Registration Act, 1860, mandates annual filing of lists of managing bodies and financial statements, and the 1991 reforms did not abolish these accountability requirements. Statement 3 is incorrect because the PMNRF is not subject to audit by the Public Accounts Committee, and it is not permitted to transfer funds directly to international NGOs as it is intended for domestic relief efforts.
Consider the following statements regarding Public accountability of NGOs receiving government grants-in-aid:
1. Under the General Financial Rules 2017, organizations receiving grants-in-aid exceeding 10 lakh rupees per annum are subject to audit by the Comptroller and Auditor General of India.
2. The NITI Aayog guidelines for grant-in-aid define voluntary organizations as entities registered under the Indian Trusts Act of 1882, and these entities are exempt from the audit provisions stipulated in the Income Tax Act of 1961.
3. The Foreign Contribution (Regulation) Amendment Act of 2020 introduced a provision requiring NGOs to receive foreign funds only in a designated bank account at the State Bank of India, New Delhi branch.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as General Financial Rules 2017 mandate that any organization receiving grants-in-aid exceeding 10 lakh rupees per annum is subject to audit by the CAG. Statement 3 is correct because the FCRA Amendment Act 2020 mandates that foreign contributions must be received only in a designated 'FCRA account' opened at the State Bank of India, New Delhi Main Branch. Statement 2 is incorrect because while NITI Aayog recognizes various legal forms of NGOs, these entities are never exempt from the audit provisions stipulated under the Income Tax Act of 1961, which remains mandatory for tax-exempt status.
Consider the following statements regarding NGOs as agents of social change in tribal and marginalized regions:
1. The Forest Rights Act of 2006 empowers Gram Sabhas to initiate the process for determining the nature and extent of individual or community forest rights within their jurisdiction.
2. The 1986 National Policy on Education introduced the District Primary Education Programme, which allowed NGOs to manage tribal schools directly under the administrative control of the Ministry of Tribal Affairs.
3. The Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Act of 1989 establishes special courts in every district and permits NGOs to file criminal charges on behalf of victims without police verification.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct because Section 6 of the Forest Rights Act, 2006, explicitly vests the Gram Sabha with the authority to initiate and determine the nature and extent of individual and community forest rights. Statement 2 is incorrect because the District Primary Education Programme (DPEP) was launched in 1994 under the Ministry of Human Resource Development, not the Ministry of Tribal Affairs, and it focused on universalizing primary education rather than placing tribal schools under NGO management. Statement 3 is incorrect because, while the SC/ST (Prevention of Atrocities) Act, 1989, mandates special courts, it does not grant NGOs the legal authority to file criminal charges directly; the legal process still requires the filing of an FIR with the police.
Consider the following statements regarding Ethical challenges and governance issues in NGO-led social entrepreneurship:
1. The 1986 Societies Registration Act serves as the primary legislation governing the taxation of social enterprises, granting tax-exempt status to entities that allocate 75 percent of their annual revenue toward rural development.
2. The 2016 Social Audit Rules, formulated under the MGNREGA framework, provide a legal mechanism for NGOs to conduct performance appraisals of government schemes and receive direct performance-linked incentives.
3. The 2010 Foreign Contribution (Regulation) Act allows NGOs to utilize up to 50 percent of their foreign-sourced funds for administrative expenses, provided they maintain a separate bank account for domestic donations.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the Societies Registration Act, 1860, governs the registration of societies, not taxation, which is instead governed by the Income Tax Act, 1961. Statement 2 is incorrect as the MGNREGA Social Audit Rules, 2011, mandate that social audits be conducted by the Gram Sabha, not by NGOs for performance-linked incentives. Statement 3 is incorrect because the FCRA, 2010 (amended in 2020), limits the use of foreign contributions for administrative expenses to 20 percent, not 50 percent.
Consider the following statements regarding Public accountability of NGOs receiving government grants-in-aid:
1. The NGO-DARPAN portal, launched by NITI Aayog in 2015, serves as a mandatory interface for voluntary organizations seeking government grants to ensure transparency in fund allocation.
2. The Supreme Court in the 2016 Leela Sharma vs. Union of India case emphasized that NGOs receiving substantial government funding are considered public authorities under the Right to Information Act, 2005.
3. Section 135 of the Companies Act, 2013, outlines the framework for Corporate Social Responsibility, where NGOs acting as implementing agencies are subject to reporting requirements regarding project expenditure.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the NGO-DARPAN portal, launched in 2015, acts as a mandatory platform for NGOs to obtain a Unique ID for applying for government grants, ensuring transparency. Statement 2 is correct because the Supreme Court, notably in the Thalappalam Ser. Coop. Bank Ltd. vs. State of Kerala case (often cited regarding public authority status), affirmed that NGOs substantially financed by the government fall under the ambit of the RTI Act, 2005. Statement 3 is correct as Section 135 of the Companies Act, 2013, mandates that companies must report CSR activities, and NGOs serving as implementing partners must adhere to strict expenditure reporting and monitoring protocols to ensure compliance.
Consider the following statements regarding NGOs as pressure groups in legislative policy formulation:
1. The Foreign Contribution Regulation Act, 2010, provides for the automatic inclusion of international non-profit organizations in the drafting committees of the Ministry of Law and Justice.
2. The Right to Information Act, 2005, was significantly influenced by the advocacy efforts of the Mazdoor Kisan Shakti Sangathan, which utilized public hearings to highlight systemic administrative corruption.
3. The 73rd Constitutional Amendment Act, 1992, includes provisions for the formal registration of NGOs as mandatory observers in Gram Sabha meetings to ensure transparent policy implementation.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct because the Mazdoor Kisan Shakti Sangathan (MKSS) pioneered the Jan Sunwai (public hearing) movement, which was instrumental in the grassroots campaign leading to the enactment of the RTI Act, 2005. Statement 1 is incorrect as the FCRA, 2010, is a regulatory framework for managing foreign funds and contains no provisions for the automatic inclusion of international NGOs in legislative drafting committees. Statement 3 is incorrect because the 73rd Constitutional Amendment Act focuses on the devolution of powers to Panchayati Raj Institutions and does not mandate the registration of NGOs as observers in Gram Sabha meetings.
Consider the following statements regarding NGOs as agents of social change in tribal and marginalized regions:
1. Under the Provisions of the Panchayats (Extension to Scheduled Areas) Act, 1996, the Gram Sabha is responsible for approving plans, programmes, and projects for social and economic development before they are taken up for implementation.
2. The 73rd Constitutional Amendment Act of 1992 provides for the reservation of one-third of the total number of seats for women in Panchayats, which NGOs often utilize to facilitate tribal women's leadership training.
3. The National Policy on Voluntary Sector 2007 outlines a framework for the government to partner with NGOs in delivering public services to marginalized communities, specifically emphasizing the role of civil society in tribal development.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as PESA Act, 1996 mandates the Gram Sabha to approve all development plans in Scheduled Areas to ensure local participation. Statement 2 is correct because Article 243D of the 73rd Amendment Act, 1992 mandates at least one-third reservation for women, a provision NGOs frequently leverage to conduct capacity-building and leadership workshops for tribal women. Statement 3 is correct as the National Policy on Voluntary Sector, 2007 explicitly establishes a framework for government-NGO collaboration, specifically highlighting the necessity of civil society participation in the socio-economic upliftment of marginalized and tribal groups.
Consider the following statements regarding NGO participation in Public-Private-People Partnerships (PPPP):
1. Under the NITI Aayog's NGO-DARPAN portal, established in 2015, NGOs are required to provide unique IDs to participate in government-funded projects involving public-private partnerships.
2. The Corporate Social Responsibility guidelines under the Companies Act of 2013 permit NGOs to utilize corporate funds for the construction of public infrastructure, provided the projects are audited by the Comptroller and Auditor General.
3. The 2007 National Policy on the Voluntary Sector identifies the role of NGOs as facilitators in PPPP models to enhance the delivery of social welfare schemes in underserved districts.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as the NGO-DARPAN portal, launched in 2015, mandates a Unique ID for NGOs to ensure transparency and eligibility for government funding. Statement 3 is correct because the 2007 National Policy on the Voluntary Sector explicitly recognizes NGOs as vital partners in bridging service gaps in underserved regions through collaborative models. Statement 2 is incorrect because while the Companies Act, 2013 allows CSR spending on public infrastructure, it does not mandate or require audits by the Comptroller and Auditor General (CAG), as CSR funds are private corporate contributions, not public exchequer funds.
Consider the following statements regarding NGOs in the implementation of the Right to Information (RTI) Act:
1. The Mazdoor Kisan Shakti Sangathan (MKSS) played a foundational role in the 1990s by organizing public hearings in Rajasthan to demand transparency in local development expenditures.
2. Section 4(1)(b) of the Right to Information Act, 2005, outlines the proactive disclosure requirements that civil society organizations often monitor through social audits.
3. The National Campaign for People's Right to Information (NCPRI) was established in 1996 to advocate for a national-level legislation on transparency and accountability.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
All three statements are correct. The MKSS pioneered the RTI movement in Rajasthan during the 1990s through 'Jan Sunwais' (public hearings) to expose corruption in public works. Section 4(1)(b) mandates proactive disclosure by public authorities, which NGOs frequently scrutinize via social audits to ensure accountability. Finally, the NCPRI was indeed formed in 1996 as a coalition of activists and organizations to spearhead the nationwide advocacy that eventually led to the enactment of the RTI Act in 2005.
Consider the following statements regarding NGOs as watchdogs in environmental governance and climate policy:
1. In the 2015 Paris Agreement, Article 12 emphasizes the role of non-state actors, including NGOs, in enhancing climate change education, training, and public awareness.
2. The Aarhus Convention, which entered into force in 2001, provides the legal framework for public access to information and participation in environmental decision-making processes.
3. The 1992 Rio Declaration on Environment and Development established the Green Climate Fund to facilitate NGO participation in monitoring national carbon sequestration targets.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is incorrect.
Statement 1 is correct as Article 12 of the 2015 Paris Agreement explicitly mandates parties to enhance climate education, training, and public participation, recognizing NGOs as key facilitators. Statement 2 is correct because the 1998 Aarhus Convention, which entered into force in 2001, grants the public rights regarding access to information, public participation in decision-making, and access to justice in environmental matters. Statement 3 is incorrect because the Green Climate Fund was established by the 2010 COP16 Cancun Agreements, not the 1992 Rio Declaration, and its primary purpose is to support developing countries in climate mitigation and adaptation, not specifically to monitor carbon sequestration targets.
Consider the following statements regarding International best practices in NGO regulation and governance standards:
1. The 1985 Vienna Convention on the Law of Treaties provides for the observer status of NGOs, and the 1992 Rio Declaration formalizes their role in international policy drafting.
2. The 2016 FATF Recommendation 8 encourages the adoption of the 2002 Council of Europe standards, which define the criteria for the financial auditing of non-profit entities.
3. The 1950 ECOSOC Resolution 288 (X) established the consultative status categories for NGOs, creating the current tripartite structure of General, Special, and Roster status.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 3 is correct. Statement 1 is incorrect. Statement 2 is incorrect.
Statement 3 is correct as ECOSOC Resolution 288 (X) of 1950 established the formal consultative status categories (General, Special, and Roster) for NGOs. Statement 1 is incorrect because the 1985 Vienna Convention relates to the Law of Treaties between States and international organizations, not NGO observer status, and the 1992 Rio Declaration focuses on sustainable development rather than formalizing NGO policy drafting. Statement 2 is incorrect because while FATF Recommendation 8 addresses the risk of terrorist financing in the non-profit sector, it does not mandate the 2002 Council of Europe standards for financial auditing.
Consider the following statements regarding Legal status and registration requirements for NGOs under Indian law:
1. Section 12A of the Income Tax Act, 1961, provides for the tax exemption of income derived from property held under trust for charitable purposes and is administered by the Ministry of Social Justice and Empowerment.
2. The Foreign Contribution Regulation Act (FCRA), 2010, provides that organizations seeking to receive foreign funds for definite cultural, economic, educational, religious, or social programs are registered under the Ministry of Home Affairs.
3. The Indian Trusts Act, 1882, governs the formation of public charitable trusts and allows for the registration of such entities with the Registrar of Companies under the Ministry of Corporate Affairs.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct because the FCRA, 2010, mandates that NGOs receiving foreign contributions must register with the Ministry of Home Affairs to ensure transparency in foreign funding. Statement 1 is incorrect because Section 12A of the Income Tax Act is administered by the Income Tax Department (Central Board of Direct Taxes), not the Ministry of Social Justice and Empowerment. Statement 3 is incorrect because public charitable trusts are registered with the Charity Commissioner or the Sub-Registrar under the state-specific Trusts Acts or the Indian Trusts Act, 1882, rather than the Registrar of Companies under the Ministry of Corporate Affairs.
Consider the following statements regarding Legal status and registration requirements for NGOs under Indian law:
1. Under the Societies Registration Act, 1860, a minimum of seven persons are eligible to form a society for the promotion of literature, science, or the fine arts, provided they subscribe their names to a memorandum of association.
2. The Companies Act, 2013, provides for the incorporation of non-profit organizations under Section 8 and allows these entities to distribute dividends to their members provided the surplus is reinvested in charitable activities.
3. The Public Trusts Act, 1950, is a central legislation that provides for the uniform regulation of charitable trusts across all Indian states and includes provisions for the mandatory dissolution of trusts failing to file annual returns.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct as Section 1 of the Societies Registration Act, 1860, mandates a minimum of seven members for registration. Statement 2 is incorrect because Section 8 companies under the Companies Act, 2013, are strictly prohibited from distributing dividends to members, as their profits must be applied solely for promoting their charitable objectives. Statement 3 is incorrect because the Public Trusts Act is not a central legislation but a state-specific law (e.g., the Maharashtra Public Trusts Act, 1950), and there is no uniform central law governing public trusts across all Indian states.
Consider the following statements regarding Impact of Foreign Contribution Regulation Act (FCRA) amendments on civil society space:
1. The FCRA amendment of 2010 replaced the 1976 legislation and introduced the provision for the renewal of registration certificates every five years instead of the previous perpetual validity.
2. The 2020 amendment to the FCRA introduced a provision prohibiting the sub-granting of foreign funds from one NGO to another, regardless of whether the recipient organization is FCRA-registered.
3. The Foreign Contribution Regulation Act was originally enacted in 1976 to regulate the acceptance and utilization of foreign contribution by certain individuals or associations.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 3 is correct. Statement 1 is incorrect.
Statement 1 is incorrect because the 2010 Act initially granted perpetual validity to registration certificates, and the requirement for renewal every five years was only introduced through the 2020 amendment, not the 2010 Act itself. Statement 2 is correct as the 2020 amendment strictly prohibits the transfer of foreign contributions to any other person or organization, even if they possess an FCRA registration. Statement 3 is correct because the original FCRA was enacted in 1976 during the Emergency to prevent foreign interference in India's internal affairs by regulating the inflow of foreign funds.
Consider the following statements regarding Impact of Foreign Contribution Regulation Act (FCRA) amendments on civil society space:
1. Section 12A of the FCRA, as amended, provides for the mandatory collection of Aadhaar numbers of all office bearers or directors of an NGO seeking registration or prior permission.
2. The 2020 amendment provides for the cancellation of registration under Section 14, and it allows the central government to suspend the certificate for a period of 360 days pending an inquiry into the organization's activities.
3. The Ministry of Home Affairs issued a notification in 2022 allowing NGOs to receive foreign funds from relatives abroad up to 10 lakh rupees per annum without informing the government, provided the source is a verified bank account.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct as the 2020 amendment mandates Aadhaar identification for all office bearers of NGOs seeking registration or prior permission to ensure transparency. Statement 2 is incorrect because the 2020 amendment allows the government to suspend a certificate for up to 180 days, not 360 days, pending inquiry. Statement 3 is incorrect because the 2022 rules raised the threshold for informing the government about foreign contributions from relatives from 1 lakh to 10 lakh rupees, but if the amount exceeds 10 lakh, the recipient must inform the government within 90 days instead of the previous 30 days.
Consider the following statements regarding Conflict of interest and foreign funding regulations in the NGO sector:
1. Section 11 of the FCRA 2010 provides for the acceptance of foreign hospitality by government servants, provided they obtain clearance from the Ministry of Finance within thirty days of the event.
2. The Ministry of Home Affairs maintains the FCRA portal, which integrates with the NITI Aayog's Darpan platform to facilitate the automated transfer of project-based grants for rural development.
3. The 2020 FCRA amendment introduced the requirement for Aadhaar authentication for all office bearers, mirroring the compliance standards set by the Prevention of Money Laundering Act of 2002.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because foreign hospitality for government servants is regulated under the Foreign Contribution (Regulation) Act, 2010, but requires prior permission from the Ministry of Home Affairs, not the Ministry of Finance. Statement 2 is incorrect as the Darpan portal is a transparency tool for tracking NGO funding and does not facilitate automated transfers of project-based grants. Statement 3 is incorrect because, while the 2020 amendment mandated Aadhaar for office bearers, it does not mirror the Prevention of Money Laundering Act (PMLA) standards, which operate under a distinct legal and regulatory framework.
Consider the following statements regarding Regulatory oversight mechanisms for NGO funding and financial auditing:
1. The Foreign Contribution (Regulation) Amendment Act of 2020 introduced the provision for Aadhar-based authentication for all office bearers and established the State Bank of India, New Delhi Main Branch, as the designated hub for all international remittances.
2. The Foreign Contribution (Regulation) Act, 2010, prohibits the transfer of foreign funds received by an NGO to any other person or organization.
3. The Income Tax Department oversees the audit of NGOs under Section 80G, which links tax deduction benefits to the submission of Form 10B for entities receiving grants exceeding 50 lakh rupees annually.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct as the FCRA (Amendment) Act, 2020, explicitly prohibits the sub-granting or transfer of foreign contributions to any other person or organization. Statement 1 is incorrect because while the 2020 amendment mandates Aadhar for office bearers, it designates the State Bank of India, New Delhi Main Branch, for the receipt of foreign funds, not for all international remittances generally. Statement 3 is incorrect because, under current Income Tax rules, Form 10B is mandatory for audit reports regardless of the grant amount if the entity claims tax exemptions under Section 12A/12AB, and the threshold for Form 10B/10BB filing is not linked to a 50 lakh rupee grant limit.
Consider the following statements regarding NGOs as pressure groups in legislative policy formulation:
1. The Environmental Impact Assessment Notification of 2006 refers to a mechanism where registered NGOs are granted the authority to veto industrial projects during public consultations.
2. The 2006 Forest Rights Act allows recognized NGOs to hold voting rights in the District Level Committee, which oversees the recognition of forest dwellers' land claims.
3. The National Advisory Council, established in 2004, functioned as an interface between the government and civil society, facilitating the drafting of the National Rural Employment Guarantee Act.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 3 is correct. Statement 1 is incorrect. Statement 2 is incorrect.
Statement 3 is correct as the National Advisory Council (NAC), set up in 2004, acted as a vital bridge between the UPA government and civil society, playing a pivotal role in drafting the MGNREGA. Statement 1 is incorrect because the EIA Notification 2006 mandates public consultation as a consultative process, but NGOs possess no legal authority to veto projects. Statement 2 is incorrect because the Forest Rights Act, 2006, empowers the Gram Sabha to initiate the process of determining individual or community forest rights, while the District Level Committee acts as the final authority for approval, with no provision for NGOs to hold voting rights.
Consider the following statements regarding NGOs in the implementation of the Right to Information (RTI) Act:
1. The Commonwealth Human Rights Initiative (CHRI) publishes periodic reports assessing the implementation status of RTI laws across various states in India.
2. Aruna Roy, a prominent social activist, received the Magsaysay Award in 2000 for her leadership in the grassroots movement that preceded the enactment of the RTI Act.
3. Under the RTI Act, 2005, the Information Commission has the authority to impose a penalty of 250 rupees per day on a Public Information Officer for delays in furnishing information.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the CHRI actively monitors and publishes reports on RTI compliance across Indian states to promote transparency. Statement 2 is correct because Aruna Roy, a key figure in the Mazdoor Kisan Shakti Sangathan (MKSS), received the Magsaysay Award in 2000 for her pivotal role in the grassroots campaign that led to the RTI Act. Statement 3 is correct as Section 20(1) of the RTI Act, 2005, mandates a penalty of Rs. 250 per day, up to a maximum of Rs. 25,000, for a Public Information Officer who fails to provide information within the specified timeframe.
Consider the following statements regarding Conflict of interest and foreign funding regulations in the NGO sector:
1. The 2010 FCRA legislation introduced the provision for a five-year validity period for registration certificates, which aligns with the audit cycles defined under the Income Tax Act of 1961.
2. The FCRA rules allow for the utilization of up to 20 percent of foreign funds for administrative expenses, a threshold increased from the 10 percent limit established in the 2010 original act.
3. The Foreign Contribution (Regulation) Act of 1976 was enacted during the Emergency period and established the initial framework for the registration of NGOs with the Ministry of External Affairs.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the FCRA 2020 amendment introduced the five-year validity, not the 2010 Act. Statement 2 is incorrect because the 2020 amendment actually reduced the administrative expense limit from 50% to 20%, whereas the 2010 Act had a 50% limit. Statement 3 is incorrect because, while the 1976 Act was passed during the Emergency, it mandated registration with the Ministry of Home Affairs, not the Ministry of External Affairs.
Consider the following statements regarding Collaborative governance models involving NGOs in disaster management:
1. Under the Disaster Management Act of 2005, the National Disaster Management Authority maintains a database of civil society organizations to coordinate relief efforts during large-scale emergencies.
2. The Sphere Handbook, revised in 2018, provides a set of minimum standards for humanitarian response that many Indian NGOs adopt to standardize aid delivery during disaster relief operations.
3. The Sendai Framework for Disaster Risk Reduction 2015-2030 recognizes NGOs as essential stakeholders in strengthening community resilience and local disaster preparedness.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the NDMA, under the DM Act 2005, maintains the 'India Disaster Resource Network' (IDRN) to map resources and organizations for effective coordination. Statement 2 is correct because the 2018 Sphere Handbook serves as the global gold standard for humanitarian response, widely integrated by Indian NGOs to ensure accountability and quality in aid delivery. Statement 3 is correct as the Sendai Framework explicitly emphasizes a 'whole-of-society' approach, identifying NGOs and civil society as critical partners in fostering local resilience and disaster risk reduction.
Consider the following statements regarding Collaborative governance models involving NGOs in disaster management:
1. The National Disaster Response Force (NDRF) conducts periodic capacity-building workshops for community-based organizations under the Aapda Mitra scheme, which trained over 5,000 volunteers by 2022.
2. Section 35 of the Disaster Management Act of 2005 allows the Central Government to engage non-governmental agencies for the purpose of assisting in disaster mitigation and capacity development.
3. During the 2004 Indian Ocean Tsunami, the NGO Coordination and Resource Centre was established to facilitate the collaborative distribution of relief materials between international agencies and local grassroots groups.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the Aapda Mitra scheme, launched by the NDMA, focuses on training community volunteers in disaster response, with over 5,000 volunteers trained by 2022. Statement 2 is correct because Section 35 of the Disaster Management Act, 2005, empowers the Central Government to take measures for disaster mitigation, including the engagement of NGOs and civil society organizations. Statement 3 is correct because the NGO Coordination and Resource Centre (NCRC) was indeed established in Nagapattinam following the 2004 Tsunami to streamline the collaborative efforts of international and local relief agencies.
Consider the following statements regarding Impact of Foreign Contribution Regulation Act (FCRA) amendments on civil society space:
1. The 2020 amendment encompasses the requirement for NGOs to file annual returns in Form FC-4, and it increases the threshold for foreign hospitality reporting from 1 lakh rupees to 5 lakh rupees.
2. The 2020 amendment reduced the limit for administrative expenses from foreign contributions from 50 percent to 20 percent of the total foreign funds received in a financial year.
3. Under the 2020 amendment, all FCRA-registered entities are directed to receive foreign contributions only in a designated 'FCRA account' opened at the main branch of the State Bank of India in New Delhi.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 3 is correct. Statement 1 is incorrect.
Statement 1 is incorrect because while the FCRA 2020 amendment mandates annual returns, it actually reduced the threshold for reporting foreign hospitality from 1 lakh rupees to nil (requiring prior permission for any amount). Statement 2 is correct as the 2020 amendment capped administrative expenses at 20 percent of total foreign funds to ensure maximum utilization for core activities. Statement 3 is correct because the amendment mandates that all foreign contributions must be received exclusively in a designated 'FCRA account' opened at the New Delhi Main Branch of the State Bank of India.
Consider the following statements regarding Corporate Social Responsibility (CSR) and the role of NGOs as implementing agencies:
1. According to the High Level Committee on CSR (2019), the government encourages companies to partner with NGOs that possess a valid 12A and 80G registration under the Income Tax Act 1961.
2. Schedule VII of the Companies Act 2013 lists the promotion of education and the reduction of child mortality as permissible areas for CSR expenditure through registered implementing agencies.
3. The National CSR Data Portal, launched in 2018, provides a public platform for tracking the financial contributions made by Indian corporations to various NGO-led social development initiatives.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the 2019 High Level Committee recommended mandatory registration of implementing agencies with the MCA, often requiring 12A/80G status for tax compliance and transparency. Statement 2 is correct because Schedule VII of the Companies Act, 2013 explicitly includes 'promoting education' and 'reducing child mortality' as core activities for CSR spending. Statement 3 is correct as the National CSR Data Portal, launched by the Ministry of Corporate Affairs in 2018, serves as a comprehensive digital repository for monitoring CSR compliance and tracking project-wise expenditures by companies.
Consider the following statements regarding NGOs as pressure groups in legislative policy formulation:
1. The Disaster Management Act, 2005, is associated with a framework that permits NGOs to directly draft state-level disaster response protocols without seeking executive approval.
2. The 1986 Environment Protection Act includes provisions that authorize NGOs to issue binding directives to the Central Pollution Control Board regarding industrial emission standards.
3. The 2013 Land Acquisition Act encompasses a clause that empowers civil society organizations to initiate legislative amendments to the compensation schedule every five years.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
All three statements are incorrect because they misrepresent the legal authority of NGOs in India. The Disaster Management Act, 2005, mandates that NGOs operate under the guidance and coordination of the National or State Disaster Management Authorities rather than drafting protocols independently; the Environment Protection Act, 1986, empowers the Central Government to set standards, while NGOs can only file complaints or provide inputs, not issue binding directives to the CPCB; and the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, vests the power to amend schedules and policies solely in the legislature and executive, not civil society organizations.
Consider the following statements regarding Role of NGOs in last-mile delivery of government welfare schemes:
1. The 1986 Societies Registration Act provides the legal framework for NGO incorporation, and the 1991 liberalization reforms granted these entities automatic tax-exempt status for all international research collaborations.
2. The 2010 National Rural Health Mission guidelines incorporated the involvement of NGOs for last-mile service delivery, and the 2012 amendment to these guidelines established a permanent federal oversight committee for NGO funding.
3. The 2005 Right to Information Act enables NGOs to access government records, and the 2009 Rules of Procedure granted these organizations the right to conduct independent financial audits of state-run welfare departments.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
All three statements are incorrect because they contain factually inaccurate claims regarding legal frameworks and administrative procedures. Statement 1 is false as the Societies Registration Act dates to 1860, not 1986, and there is no provision for automatic tax-exempt status for international collaborations. Statement 2 is incorrect because the NRHM guidelines did not establish a permanent federal oversight committee for NGO funding in 2012, and Statement 3 is false because the RTI Act allows citizens to access records, but no 2009 rule grants NGOs the legal authority to conduct independent financial audits of state-run welfare departments.
Consider the following statements regarding NGOs as intermediaries in community-based natural resource management:
1. The National Afforestation Programme, launched in 2002, incorporates a decentralized model where NGOs act as nodal agencies to channel government funds directly to Forest Development Agencies.
2. Community-based fisheries management in the Chilika Lake region has been supported by NGOs since the 1990s to facilitate the implementation of the 1991 Supreme Court directives on sustainable resource extraction.
3. The Watershed Development Fund, established by NABARD in 1999, designates NGOs as Project Implementing Agencies to bridge the gap between financial institutions and rural watershed committees.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the National Afforestation Programme (2002) utilizes a three-tier structure where NGOs act as essential intermediaries between the Forest Development Agencies and Village Forest Committees. Statement 2 is correct because NGOs played a pivotal role in organizing the Chilika Matsyajibi Mahasangh to enforce sustainable fishing practices following the 1991 Supreme Court directives regarding the lake's ecological conservation. Statement 3 is correct as the Watershed Development Fund (1999) mandates NGOs to serve as Project Implementing Agencies (PIAs), providing the technical and social mobilization expertise required to connect NABARD's financial resources with local watershed committees.
Consider the following statements regarding Role of NGOs in addressing gender-based violence and social justice:
1. The 1979 Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) Committee invites shadow reports from civil society organizations to supplement official state submissions.
2. The Nirbhaya Fund, established in 2013, provides financial support to NGOs that operate One Stop Centres for survivors of sexual assault across various Indian districts.
3. In the Vishaka v. State of Rajasthan (1997) judgment, the Supreme Court acknowledged the role of NGOs in assisting internal complaints committees regarding workplace sexual harassment.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the CEDAW Committee encourages NGOs to submit 'shadow reports' to provide an independent perspective on a state's progress in implementing women's rights. Statement 2 is correct because the Nirbhaya Fund, created in 2013, channels financial assistance to various stakeholders, including NGOs, to support the operationalization of One Stop Centres (OSCs) for survivors of violence. Statement 3 is correct because the Supreme Court's Vishaka guidelines mandated the inclusion of a third party, often an NGO member, in the Complaints Committee to ensure impartiality and transparency in addressing workplace sexual harassment.
Consider the following statements regarding Capacity building of NGOs for effective public service delivery:
1. The 2005 Right to Information Act includes provisions for the direct inclusion of NGOs under the definition of public authorities, which allows for mandatory annual audits by the Comptroller and Auditor General.
2. Under the NITI Aayog's NGO-DARPAN portal, over 170,000 voluntary organizations are registered to facilitate transparency in government grant disbursements.
3. The Foreign Contribution (Regulation) Act of 2010 provides the legal framework for NGOs to receive international funding for public service delivery projects.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 3 is correct. Statement 1 is incorrect.
Statement 1 is incorrect because the RTI Act, 2005, does not automatically classify all NGOs as public authorities; they are only covered if they are substantially financed, directly or indirectly, by funds provided by the appropriate government. Statement 2 is correct as the NGO-DARPAN portal, managed by NITI Aayog, serves as a centralized platform to ensure transparency and accountability in the grant-making process for over 170,000 registered voluntary organizations. Statement 3 is correct because the FCRA, 2010, regulates the acceptance and utilization of foreign contributions by NGOs, ensuring that international funding for public service projects aligns with national interests.
Consider the following statements regarding NGO participation in Public-Private-People Partnerships (PPPP):
1. The 1986 National Policy on Education introduced the concept of the 'Community-School Linkage' which allows NGOs to manage primary school infrastructure through direct budgetary allocations from the Ministry of Finance.
2. The 2005 Disaster Management Act includes provisions for the National Disaster Response Force to delegate the entire command of local relief operations to NGOs during the initial 48 hours of a crisis.
3. The Foreign Contribution Regulation Act of 2010 provides for the automatic inclusion of international NGOs in the PPPP projects of the Ministry of Road Transport and Highways if they have a decade of operational history.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
All three statements are incorrect because they fabricate legal and policy provisions: the 1986 National Policy on Education did not authorize NGOs to manage school infrastructure via direct Ministry of Finance budgetary allocations; the 2005 Disaster Management Act mandates that the NDRF remains under statutory command and does not permit the delegation of relief operations to NGOs; and the FCRA 2010 contains no provisions for the automatic inclusion of international NGOs in Ministry of Road Transport and Highways projects.
Consider the following statements regarding Conflict of interest and foreign funding regulations in the NGO sector:
1. Under the FCRA rules, every organization receiving foreign contributions is designated a specific bank account in the New Delhi Main Branch of the State Bank of India for initial receipt of funds.
2. The Foreign Contribution (Regulation) Act, 2010 was amended in 2020 to prohibit the sub-granting of foreign funds from one NGO to another registered entity.
3. The Supreme Court of India in the 2022 judgment of Noel Harper v. Union of India upheld the constitutional validity of the 2020 amendments to the FCRA framework.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the 2020 FCRA amendment mandates that all foreign contributions must be received only in a designated 'FCRA account' at the SBI New Delhi Main Branch. Statement 2 is correct because the 2020 amendment explicitly prohibits the transfer or sub-granting of foreign funds to any other person or organization, regardless of their registration status. Statement 3 is correct as the Supreme Court in 'Noel Harper v. Union of India (2022)' upheld the 2020 amendments, affirming that the state has the sovereign right to regulate foreign contributions to ensure they do not adversely affect national interest.
Consider the following statements regarding Regulatory oversight mechanisms for NGO funding and financial auditing:
1. Section 12A of the Income Tax Act provides for the registration of NGOs, which is a prerequisite for claiming tax exemptions on their income.
2. Under the FCRA rules amended in 2020, NGOs are permitted to utilize a maximum of 20 percent of foreign funds for administrative expenses.
3. The Darpan portal, launched by NITI Aayog, serves as a centralized platform to enhance transparency by linking NGO data with the Public Financial Management System.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as Section 12A of the Income Tax Act mandates registration for NGOs to claim tax exemptions on their surplus income. Statement 2 is correct because the 2020 amendment to the Foreign Contribution (Regulation) Act (FCRA) reduced the cap on administrative expenses from 50 percent to 20 percent to ensure more funds are directed toward core charitable activities. Statement 3 is correct as the Darpan portal acts as a single-point interface between NGOs and the government, facilitating transparency by integrating data with the Public Financial Management System (PFMS) for better tracking of fund utilization.
Consider the following statements regarding Regulatory oversight mechanisms for NGO funding and financial auditing:
1. The Ministry of Home Affairs maintains a public database of FCRA-registered organizations, which includes details on the annual receipt of foreign contributions.
2. The FCRA regulatory framework provides for the cancellation of registration if an NGO fails to file annual returns for two consecutive years, a process managed by the Reserve Bank of India's oversight committee.
3. The 2015 amendments to the FCRA rules allow NGOs to receive foreign funds in designated accounts, provided the organization submits a quarterly report to the District Magistrate for verification of fund utilization.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct because the Ministry of Home Affairs maintains the FCRA portal, which mandates that NGOs disclose annual foreign contribution receipts for transparency. Statement 2 is incorrect because the cancellation of registration for non-filing of returns is managed by the Ministry of Home Affairs, not the Reserve Bank of India. Statement 3 is incorrect because, under the FCRA framework, foreign funds must be received in a designated 'FCRA account' at the State Bank of India, New Delhi Main Branch, and there is no provision requiring quarterly reporting to the District Magistrate for fund utilization verification.
Consider the following statements regarding NGOs in the implementation of the Right to Information (RTI) Act:
1. The 2005 RTI Act incorporates the recommendations of the 1993 Consumer Education and Research Centre report, which first suggested the appointment of independent Information Ombudsmen.
2. The Right to Information Act, 2005, draws its legal authority from the 1976 Supreme Court judgment in the Raj Narain vs State of Uttar Pradesh case, which established the constitutional right to privacy.
3. The Satark Nagrik Sangathan (SNS) launched the Report Card on Public Services in 2003, which utilized data from the Official Secrets Act to measure the efficiency of government welfare schemes.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the 1993 Consumer Education and Research Centre report did not suggest Information Ombudsmen; the RTI Act evolved from the MKSS movement and the 1997 Shourie Committee recommendations. Statement 2 is incorrect because while the Raj Narain case established the right to information as part of Article 19(1)(a), it did not establish the right to privacy, which was later affirmed in the K.S. Puttaswamy judgment. Statement 3 is incorrect because the Satark Nagrik Sangathan (SNS) used RTI applications to generate report cards, not the Official Secrets Act, which is a colonial-era law that restricts rather than promotes transparency.
Consider the following statements regarding Role of NGOs in last-mile delivery of government welfare schemes:
1. The 1999 FEMA regulations allow registered NGOs to utilize foreign contributions for the implementation of welfare projects, provided they maintain audited accounts for a period of five years.
2. The 2007 Supreme Court judgment in the case of 'Indian Council for Enviro-Legal Action vs Union of India' acknowledged the role of NGOs in filing Public Interest Litigations to ensure the implementation of environmental welfare schemes.
3. As per the 2016 National Policy on Voluntary Sector, the government recognizes NGOs as partners in the implementation of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) to facilitate social audits.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the Foreign Contribution (Regulation) Act (FCRA), 2010 (replacing the 1976 Act, with FEMA regulations governing related financial aspects) mandates NGOs to maintain audited accounts for five years for foreign-funded welfare projects. Statement 2 is correct because the Supreme Court in 'Indian Council for Enviro-Legal Action vs Union of India' (2007) and earlier precedents affirmed the locus standi of NGOs in filing PILs to enforce environmental rights and welfare schemes. Statement 3 is correct as the 2016 National Policy on Voluntary Sector explicitly identifies NGOs as key partners for enhancing transparency and accountability in government schemes, including facilitating social audits for MGNREGA.
Consider the following statements regarding Corporate Social Responsibility (CSR) and the role of NGOs as implementing agencies:
1. Under Section 135 of the Companies Act 2013, companies with a net worth of at least 500 crore rupees are eligible to engage NGOs as implementing agencies for their CSR projects.
2. The Companies (Corporate Social Responsibility Policy) Amendment Rules 2021 introduced the requirement for NGOs to register with the Ministry of Corporate Affairs via Form CSR-1 to receive CSR funds.
3. The Companies Act 2013 provides for a mandatory 5 percent contribution of average net profits toward CSR, and the 2014 rules allow companies to count administrative overheads up to 15 percent of the total budget.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is incorrect.
Statement 1 is correct as Section 135 mandates CSR for companies meeting specific financial thresholds (net worth of 500 crore, turnover of 1000 crore, or net profit of 5 crore) and permits them to implement projects through registered NGOs. Statement 2 is correct because the 2021 Amendment Rules made it mandatory for all implementing agencies to register with the MCA via Form CSR-1 to ensure transparency and accountability in fund utilization. Statement 3 is incorrect because the Companies Act mandates a 2 percent contribution of average net profits, not 5 percent, and the 2021 rules capped administrative overheads at 5 percent of the total CSR expenditure, not 15 percent.
Consider the following statements regarding Role of NGOs in promoting human rights and constitutional awareness:
1. The 73rd Constitutional Amendment Act includes provisions for the social audit of local governance, and the 2005 Right to Information Act allows NGOs to access internal state audit reports for monitoring human rights compliance.
2. The 1948 Universal Declaration of Human Rights provides the foundational text for the 1993 Protection of Human Rights Act, which established the National Human Rights Commission as a constitutional body.
3. The 1966 International Covenant on Civil and Political Rights forms the basis of the 2006 Forest Rights Act, which provides for the legal recognition of community forest resources through NGO-led documentation.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the 73rd Amendment does not explicitly mandate social audit, and the RTI Act does not provide automatic access to internal state audit reports for human rights monitoring. Statement 2 is false as the National Human Rights Commission (NHRC) is a statutory body established under the Protection of Human Rights Act, 1993, not a constitutional body. Statement 3 is incorrect because the Forest Rights Act, 2006, is rooted in addressing historical injustices against forest-dwelling communities rather than being derived from the 1966 International Covenant on Civil and Political Rights.
Consider the following statements regarding Role of NGOs in addressing gender-based violence and social justice:
1. The 1948 Universal Declaration of Human Rights provides for the legal registration of non-profit entities, and the 1966 International Covenant on Civil and Political Rights serves as the primary instrument for NGO tax exemption status.
2. The 1993 UN Declaration on the Elimination of Violence against Women encourages NGOs to participate in the development of national policies for gender-based violence prevention.
3. Under the Foreign Contribution Regulation Act (FCRA), 2010, NGOs receiving international funding for social justice advocacy are subject to periodic audits by the Ministry of Home Affairs.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 3 is correct. Statement 1 is incorrect.
Statement 1 is incorrect because neither the 1948 Universal Declaration of Human Rights nor the 1966 ICCPR contains provisions regarding the legal registration or tax exemption status of NGOs, which are matters governed by domestic national laws. Statement 2 is correct as the 1993 UN Declaration on the Elimination of Violence against Women explicitly mandates states to work with NGOs to develop policies and programs to prevent gender-based violence. Statement 3 is correct because the FCRA, 2010, mandates that any NGO receiving foreign contributions must register with the Ministry of Home Affairs and is subject to strict financial monitoring and periodic audits to ensure compliance with national security and social justice mandates.
Consider the following statements regarding Legal status and registration requirements for NGOs under Indian law:
1. The Foreign Contribution Regulation Rules, 2011, allow for the transfer of foreign funds between registered NGOs and provides for the direct conversion of such funds into domestic currency through any commercial bank branch.
2. The Religious Endowments Act, 1863, encompasses the management of all charitable institutions in India and provides for the appointment of government-nominated trustees to oversee the financial audits of non-profit organizations.
3. The NITI Aayog's NGO-DARPAN portal serves as a centralized database for NGOs and provides for the automatic issuance of FCRA licenses to all registered entities upon successful completion of the portal's verification process.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the FCRA, 2010 prohibits the sub-granting or transfer of foreign funds between NGOs, and funds must be received only in a designated 'FCRA account' at the SBI New Delhi Main Branch. Statement 2 is incorrect as the Religious Endowments Act, 1863, is limited to specific religious trusts and does not govern the general management or financial audits of all non-profit organizations in India. Statement 3 is incorrect because NGO-DARPAN is merely a transparency portal for government interface and does not grant FCRA licenses, which are issued exclusively by the Ministry of Home Affairs following a rigorous, independent security vetting process.
Consider the following statements regarding Accountability and transparency frameworks for NGOs under FCRA:
1. The 2020 amendment to the FCRA reduced the administrative expense limit for organizations receiving foreign funds from 50 percent to 20 percent of the total foreign contribution received in a financial year.
2. The FCRA portal facilitates the filing of annual returns in Form FC-4, which includes details of the amount of foreign contribution received and the specific purpose for which it was utilized.
3. Section 12(1A) of the FCRA 2010 provides for the mandatory submission of Aadhaar numbers for all office bearers or directors of an NGO seeking registration or prior permission.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the FCRA (Amendment) Act, 2020, capped administrative expenses at 20% to ensure more funds are utilized for core objectives. Statement 2 is correct because the FCRA portal mandates the filing of Form FC-4 annually, providing a transparent record of foreign fund receipts and their utilization. Statement 3 is correct as the 2020 amendment introduced Section 12(1A), making the submission of Aadhaar numbers mandatory for all office bearers to enhance identity verification and accountability.
Consider the following statements regarding Role of NGOs in addressing gender-based violence and social justice:
1. The Protection of Women from Domestic Violence Act, 2005, formally recognizes NGOs as service providers capable of recording Domestic Incident Reports.
2. The 1995 Beijing Platform for Action established the Global Fund for Women, which operates under the direct administrative control of the United Nations Economic and Social Council.
3. The 2013 Sexual Harassment of Women at Workplace Act includes provisions for NGOs to act as external members of the Local Complaints Committee, which was first piloted in the 2005 National Rural Health Mission.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct because Section 10 of the Protection of Women from Domestic Violence Act, 2005, empowers registered NGOs to function as 'service providers' and record Domestic Incident Reports. Statement 2 is incorrect because the Global Fund for Women is an independent, non-profit grant-making organization and is not under the administrative control of the UN ECOSOC. Statement 3 is incorrect because, while the 2013 Act mandates an external member from an NGO for the Internal/Local Complaints Committee, this requirement has no connection to the 2005 National Rural Health Mission.
Consider the following statements regarding Capacity building of NGOs for effective public service delivery:
1. The National Policy on the Voluntary Sector, adopted in 2007, establishes a dedicated National Accreditation Council to oversee the financial performance of all registered NGOs.
2. The 1999 FEMA guidelines allow NGOs to utilize foreign grants for political advocacy activities, provided the funds are routed through a designated nationalized bank account.
3. The 2013 Companies Act introduced Corporate Social Responsibility provisions, which permit NGOs to receive funding directly from the Prime Minister's National Relief Fund for local infrastructure projects.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the 2007 National Policy on the Voluntary Sector proposed an accreditation system but never established a mandatory National Accreditation Council. Statement 2 is false as the Foreign Contribution (Regulation) Act (FCRA), not FEMA, governs foreign funds, and it strictly prohibits the use of foreign contributions for political activities. Statement 3 is incorrect because CSR funds under the 2013 Companies Act are intended for corporate social initiatives and cannot be sourced from the Prime Minister's National Relief Fund, which is a public fund.
Consider the following statements regarding Role of NGOs in promoting human rights and constitutional awareness:
1. Amnesty International’s 2018 report on the implementation of the Protection of Human Rights Act, 1993, highlighted the procedural gaps in the functioning of State Human Rights Commissions across various districts.
2. The People’s Union for Civil Liberties (PUCL) successfully petitioned the Supreme Court in 2001, leading to the landmark right-to-food orders that expanded the scope of Article 21.
3. The 1986 Juvenile Justice Act was amended in 2015 to include provisions for NGO-run observation homes, and the 2009 Right to Education Act refers to these homes as primary nodal agencies for monitoring child rights.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is incorrect.
Statement 1 is correct as Amnesty International has historically documented procedural inefficiencies in the implementation of the 1993 Act. Statement 2 is correct because the PUCL's 2001 petition (PUCL v. Union of India) was pivotal in transforming food security into a legal entitlement under the Right to Life (Article 21). Statement 3 is incorrect because, while the 2015 Juvenile Justice Act does involve NGOs in child care, the Right to Education Act (2009) does not designate these homes as the primary nodal agencies for monitoring child rights; that responsibility lies primarily with the National and State Commissions for Protection of Child Rights.
Consider the following statements regarding NGOs as agents of social change in tribal and marginalized regions:
1. The 2005 Right to Information Act allows civil society organizations to conduct social audits of government welfare schemes, and the 2009 amendment grants these organizations the power to penalize officials for non-compliance.
2. The 1999 Foreign Contribution (Regulation) Act regulates the receipt of foreign funds by NGOs and includes a provision that grants tax-exempt status to any organization working exclusively on tribal health initiatives.
3. The Integrated Tribal Development Agency, established under the Fifth Five-Year Plan, functions as an autonomous body that provides NGOs with direct budgetary allocations from the Union Finance Ministry for local infrastructure projects.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because while the RTI Act facilitates social audits, it does not grant NGOs the power to penalize officials, as that authority rests with Information Commissions. Statement 2 is incorrect as the FCRA 2010 (replacing the 1976 Act) regulates foreign funding, but it contains no provision granting automatic tax-exempt status to organizations based on tribal health work. Statement 3 is incorrect because the Integrated Tribal Development Agency (ITDA) operates under State Governments as a project-level agency for tribal development, not as an autonomous body receiving direct budgetary allocations from the Union Finance Ministry for NGOs.
Consider the following statements regarding Accountability and transparency frameworks for NGOs under FCRA:
1. The Foreign Contribution (Regulation) Act 2010 replaced the 1976 legislation and established the National Financial Intelligence Unit to oversee the digital audit of all foreign-funded NGOs.
2. Under the 2020 amendment, the central government is empowered to conduct a summary inquiry to direct that such foreign contribution shall not be utilized pending the outcome of the inquiry.
3. Rule 17A of the Foreign Contribution (Regulation) Rules 2011 specifies that any change in the name, address, or designated bank account of an NGO must be intimated to the Ministry of Home Affairs within 15 days.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 3 is correct. Statement 1 is incorrect.
Statement 1 is incorrect because the FCRA 2010 is overseen by the Ministry of Home Affairs, not a 'National Financial Intelligence Unit'. Statement 2 is correct as the 2020 amendment empowers the government to conduct a summary inquiry and freeze foreign contributions pending investigation to prevent misuse. Statement 3 is correct because Rule 17A mandates that any changes to key details like the designated bank account or address must be intimated to the Ministry of Home Affairs within 15 days.
Consider the following statements regarding NGOs as intermediaries in community-based natural resource management:
1. The Van Panchayat system in Uttarakhand, dating back to the 1931 colonial administrative rules, frequently engages civil society organizations to mediate land-use conflicts between local residents and state authorities.
2. The 1972 Wildlife Protection Act provides for the creation of community reserves, and the 2003 amendment to this Act established the National NGO Coordination Board to oversee the management of buffer zones around tiger reserves.
3. In the implementation of the 2006 Forest Rights Act, NGOs have been instrumental in providing technical assistance to Gram Sabhas for the mapping of community forest resource boundaries.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as Van Panchayats, formalized under the 1931 rules, often leverage NGOs to facilitate dialogue between local communities and the forest department. Statement 3 is correct because NGOs have played a pivotal role in training Gram Sabhas and providing technical support for the complex GIS-based mapping required under the 2006 Forest Rights Act. Statement 2 is incorrect because while the 2002 amendment to the Wildlife Protection Act introduced Community Reserves, there is no statutory provision for a 'National NGO Coordination Board' under this Act.
Consider the following statements regarding NGOs as watchdogs in environmental governance and climate policy:
1. The Kyoto Protocol of 1997 introduced the Clean Development Mechanism, which allows accredited NGOs to serve as official auditors for industrial emission reduction projects in Annex I countries.
2. The Climate Action Network (CAN), established in 1989, functions as a global coalition of over 1,300 NGOs that monitors government compliance with UNFCCC climate pledges.
3. The 1972 Stockholm Conference on the Human Environment led to the creation of the United Nations Environment Programme, which grants NGOs voting rights on the Governing Council.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct because the Climate Action Network (CAN) is indeed a global network of over 1,300 NGOs that actively monitors and lobbies for government compliance with UNFCCC commitments. Statement 1 is incorrect because the Clean Development Mechanism (CDM) under the Kyoto Protocol uses designated operational entities (DOEs) for auditing, not NGOs. Statement 3 is incorrect because while the 1972 Stockholm Conference led to the creation of UNEP, NGOs hold observer status and participate in policy dialogues, but they do not possess voting rights on the Governing Council.
Consider the following statements regarding Collaborative governance models involving NGOs in disaster management:
1. The Hyogo Framework for Action 2005-2015 established the National Disaster Response Fund, which allocates 15 percent of its annual corpus to NGOs registered under the Foreign Contribution Regulation Act.
2. The 2016 National Disaster Management Plan includes specific provisions for the participation of NGOs in the 'Search and Rescue' and 'Relief and Rehabilitation' phases of disaster governance.
3. The 2019 Disaster Management Amendment Act formalizes the District Disaster Management Authority's power to appoint NGO representatives as permanent voting members of the state-level executive committee.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 2 is correct. Statement 1 is incorrect. Statement 3 is incorrect.
Statement 2 is correct because the 2016 National Disaster Management Plan explicitly recognizes NGOs as vital stakeholders in community-based disaster risk reduction, specifically outlining their roles in search, rescue, and relief operations. Statement 1 is incorrect because the Hyogo Framework was a non-binding international agreement that did not establish the National Disaster Response Fund (NDRF), which was created under the Disaster Management Act, 2005, and does not mandate a 15 percent allocation to NGOs. Statement 3 is incorrect as there was no 2019 Disaster Management Amendment Act; furthermore, the District Disaster Management Authority (DDMA) is chaired by the District Magistrate and does not include NGO representatives as permanent voting members.
Consider the following statements regarding Role of NGOs in promoting human rights and constitutional awareness:
1. The 1990 Convention on the Rights of the Child is associated with the 2005 Protection of Women from Domestic Violence Act, which allows registered NGOs to act as service providers for victim support and legal aid.
2. The 1976 42nd Constitutional Amendment introduced the Directive Principles of State Policy regarding legal aid, and the 1987 Legal Services Authorities Act encompasses the role of NGOs in providing paralegal training to rural communities.
3. The 1992 National Commission for Women Act provides for the inclusion of civil society members, and the 2013 Sexual Harassment of Women at Workplace Act refers to these members as the presiding officers of internal complaints committees.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is incorrect. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is incorrect because the 1990 Convention on the Rights of the Child is unrelated to the 2005 Domestic Violence Act, which designates NGOs as 'Service Providers' under Section 10 rather than being linked to that specific international treaty. Statement 2 is incorrect because the Directive Principle regarding free legal aid (Article 39A) was indeed added by the 42nd Amendment, but the 1987 Legal Services Authorities Act focuses on state-run legal aid clinics rather than mandating NGO-led paralegal training. Statement 3 is incorrect because while the 1992 NCW Act allows for civil society members, the 2013 POSH Act mandates that the Presiding Officer of an Internal Complaints Committee must be a senior-level woman employee from within the organization, not a civil society member.
Consider the following statements regarding Capacity building of NGOs for effective public service delivery:
1. The Ministry of Rural Development utilizes the 'Gram Samvad' mobile application to monitor the field-level implementation of welfare schemes by grassroots NGOs.
2. The 2016 amendments to the FCRA rules introduced a provision for the online submission of annual returns for NGOs receiving foreign contributions.
3. Section 12A of the Income Tax Act, 1961, serves as the primary mechanism for NGOs to claim tax exemptions on income applied for charitable public purposes.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
Statement 1 is correct as the 'Gram Samvad' app, launched by the Ministry of Rural Development, facilitates real-time monitoring and transparency in the implementation of rural welfare schemes. Statement 2 is correct because the 2016 FCRA amendments mandated the digitization of the compliance process, requiring all annual returns to be filed online to ensure greater accountability. Statement 3 is correct as Section 12A of the Income Tax Act provides the legal framework for tax exemption on income derived from property held under trust for charitable or religious purposes, provided the NGO is registered under this section.
Consider the following statements regarding Ethical challenges and governance issues in NGO-led social entrepreneurship:
1. The 2013 National Policy on Voluntary Sector, drafted by the Planning Commission, establishes a mandatory accreditation board that oversees the internal governance and board composition of all registered non-profit entities.
2. The 2005 Right to Information Act includes provisions that classify all NGOs receiving more than 10 lakh rupees in annual government grants as public authorities, thereby bringing their internal board meetings under public scrutiny.
3. The Foreign Contribution (Regulation) Amendment Act, 2020, prohibits the transfer of foreign funds received by an NGO to any other person or organization, regardless of their registration status.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 3 is correct. Statement 1 is incorrect. Statement 2 is incorrect.
Statement 3 is correct as the FCRA Amendment Act, 2020, explicitly prohibits the sub-granting or transfer of foreign contributions to any other person or organization. Statement 1 is incorrect because the 2007 National Policy on Voluntary Sector was a vision document that encouraged self-regulation rather than establishing a mandatory accreditation board. Statement 2 is incorrect because, while the CIC has occasionally interpreted NGOs receiving substantial government funding as 'public authorities' under the RTI Act, there is no blanket statutory provision in the 2005 Act that automatically classifies all NGOs receiving over 10 lakh rupees as such.
Consider the following statements regarding International best practices in NGO regulation and governance standards:
1. The 2002 Johannesburg World Summit on Sustainable Development established the Global NGO Forum, which oversees the annual reporting standards for international environmental organizations.
2. The 1948 Universal Declaration of Human Rights includes provisions for NGO accreditation, and the 1950 ECOSOC Resolution 288 (X) serves as the primary mechanism for its implementation.
3. The 2002 Recommendation CM/Rec(2007)14 of the Council of Europe provides a framework for the legal status of NGOs, emphasizing the right to form associations without prior authorization.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 3 is correct. Statement 1 is incorrect. Statement 2 is incorrect.
Statement 3 is correct as the Council of Europe's Recommendation CM/Rec(2007)14 establishes fundamental standards for the legal status of NGOs, specifically upholding the freedom of association and the right to form entities without prior state authorization. Statement 1 is incorrect because the 2002 Johannesburg Summit did not establish a 'Global NGO Forum' for reporting standards, as NGO reporting is typically governed by domestic laws or voluntary international codes like the INGO Accountability Charter. Statement 2 is incorrect because the 1948 Universal Declaration of Human Rights does not contain provisions for NGO accreditation; while ECOSOC Resolution 1996/31 (not 288 X) governs the consultative status of NGOs with the UN, it is a procedural framework rather than an accreditation mandate derived from the Declaration.
Consider the following statements regarding NGOs as intermediaries in community-based natural resource management:
1. The Joint Forest Management (JFM) guidelines issued by the Ministry of Environment and Forests in 1990 formally recognized the role of NGOs as facilitators between forest departments and local village committees.
2. The 1988 National Forest Policy introduced the concept of social forestry, and under this framework, the 1992 amendment to the Indian Penal Code granted NGOs the authority to initiate legal proceedings against illegal timber extraction.
3. Under the Biological Diversity Act of 2002, NGOs often assist Biodiversity Management Committees in documenting traditional knowledge within the People’s Biodiversity Registers.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 3 is correct. Statement 2 is incorrect.
Statement 1 is correct as the 1990 JFM guidelines explicitly mandated NGOs to act as intermediaries to bridge the communication gap between forest departments and local communities. Statement 3 is correct because the Biological Diversity Act, 2002, empowers Biodiversity Management Committees to prepare People’s Biodiversity Registers, where NGOs frequently provide technical and logistical support to document local traditional knowledge. Statement 2 is incorrect because while the 1988 National Forest Policy promoted social forestry, there was no 1992 amendment to the Indian Penal Code granting NGOs legal authority to prosecute timber extraction; such powers are generally vested in forest officials under the Indian Forest Act, 1927.
Consider the following statements regarding NGO participation in Public-Private-People Partnerships (PPPP):
1. The 12th Five Year Plan (2012-2017) explicitly recognized NGOs as essential partners in the implementation of the Rashtriya Swasthya Bima Yojana, a key component of the PPPP framework in healthcare.
2. The 2009 Right to Education Act provides for the formation of School Management Committees, which are empowered to transfer the administrative control of government schools to registered NGOs through a memorandum of understanding.
3. The 2016 Model Concession Agreement for Urban Water Supply allows private operators to form joint ventures with NGOs, where the NGOs hold a 51 percent equity stake in the special purpose vehicle.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is incorrect. Statement 3 is incorrect.
Statement 1 is correct as the 12th Five Year Plan emphasized NGOs as critical intermediaries for service delivery in schemes like RSBY to enhance last-mile connectivity. Statement 2 is incorrect because the Right to Education Act, 2009, mandates School Management Committees to monitor school functioning, but it does not empower them to transfer administrative control or ownership to NGOs. Statement 3 is incorrect because the 2016 Model Concession Agreement for Urban Water Supply focuses on private sector efficiency and does not mandate or facilitate NGOs holding a 51 percent equity stake in special purpose vehicles.
Consider the following statements regarding Accountability and transparency frameworks for NGOs under FCRA:
1. The Foreign Contribution (Regulation) Amendment Act 2020 introduced a provision prohibiting the transfer of foreign contributions received by an organization to any other person or entity.
2. The Foreign Contribution (Regulation) Act was enacted in 2010 to consolidate the law regarding the acceptance and utilization of foreign contribution by certain individuals or associations.
3. Section 17 of the FCRA 2010 provides that every person who is granted a certificate of registration or prior permission shall receive foreign contribution only in a single designated bank account at the State Bank of India, New Delhi main branch.
How many of the statements given above are correct?
- Only one
- Only two
- All three
- None
Explanation: Statement 1 is correct. Statement 2 is correct. Statement 3 is correct.
All three statements are correct. The FCRA Amendment Act 2020 introduced Section 7, which explicitly prohibits the sub-granting or transfer of foreign funds to other entities to ensure better tracking. The FCRA 2010 was enacted to replace the 1976 Act, aiming to regulate the acceptance and utilization of foreign contributions for activities detrimental to national interest. Furthermore, Section 17 was amended in 2020 to mandate that all foreign contributions must be received exclusively in a designated 'FCRA account' at the State Bank of India, New Delhi Main Branch, to enhance transparency and oversight.