Page 10 - Banking Finance September 2020

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Foreign contribution Act NGO or association to surrender its Asserting there is muted demand for
FCRA certificate, capping administrative loans, Kumar said banks are not risk
passed in Lok Sabha expenses at 20 per cent, from the cur- averse, but are being prudent in these
The Lok Sabha passed a Bill to amend rent 50 per cent. It also seeks to man- trying times to avoid a repeat of the
the Foreign Contribution (Regulation) date civil society organisations to have post 2008 scenario when there was
Act, which seeks to make it mandatory SBI accounts at a Delhi branch (to be "dilution" in credit underwriting stan-
for office bearers of any nongovern- notified later) to receive foreign funds, dards.
mental organisation to provide their and prohibits one Fcra-registered soci-
Aadhaar numbers at the time of regis- ety to transfer funds to another which In a first, India makes it to
tration and also brings various other is also recognised by the Act.
changes. top so of innovation index
The Foreign Contribution (Regulation) Step up infra investment India has moved four places on the
Amendment Bill, 2020, was passed by Global Innovation Index (GII) 2020 to
the Lok Sabha, even as civil society to spur growth: SBI Chief rank at 48 since 2019. This makes it the
organisations asked the government to The investment in infrastructure needs third most innovative lower middle-in-
stop looking suspiciously at them. to be stepped up to spur demand and come economy in the world, according
revive the economy, said State Bank of to the report. India at the 48th place
Amid concerns raised by various Oppo-
India (SBI) Chairman Rajnish Kumar at also retains the highest rank in the
sition members about the Bill, Minis-
ter of State for Home Nityanand Rai a webinar organised by the All India central and southern Asia region.
said the legislation was not against any Management Association. The index, compiled by the World In-
religion or NGO. The data clearly shows that invest- tellectual Property Organization
Replying to the discussion on the Bill, ment in the economy has come down, (WIPO), along with Cornell University
the minister asserted that legislation is said the head of the country's biggest and the INSEAD Business School, pre-
necessary for an Atmanirbhar Bharat lender. "If the capital expenditure is sents the latest global innovation
(self-reliant India) and that it will help not happening and investment in the trends and annual innovation ranking
curb misuse of foreign funds. economy is not happening at the same of 131 economies.

The Bill seeks to make it mandatory for pace, then obviously this is a demand India increased the most in three pil-
office bearers of any non-governmen- issue," he said. lars: Institutions (61, from 77 in 2019),
tal organisation (NGO) to provide their In such circumstances, there is a need business sophistication (55, from 65 in
Aadhaar numbers at the time of regis- to create more businesses and entre- 2019), and creative outputs (64, from
tration. preneurs who have the wherewithal to 78 in 2019), it noted.
Among other provisions, the Bill pro- invest in operations and borrow, he ob- Under institutions, the country's rank
poses to enable the Centre to allow an served. on indicators, such as political and op-

10 | 2020 | SEPTEMBER | BANKING FINANCE