The Foreign Contribution (Regulation) Amendment Bill, 2026, proposes tighter rules for Indian organisations that receive foreign funds. The Bill seeks to change rules on registration, renewal and the handling of foreign-funded assets. It also proposes changes relating to organisations that receive foreign funds through the prior-permission route, the responsibilities of key functionaries and investigations into FCRA violations.
The Centre says the changes are meant to address gaps that have emerged in the administration of the existing law, improve transparency and ensure that foreign funds are used only for permitted purposes.
But critics are concerned. Christian organisations, NGOs and minority groups fear that the new rules could increase paperwork and administrative demands. They also worry that officials may get wider powers to act against organisations and that mistakes or delays in compliance could have serious consequences for legitimate charitable and religious work.
The Bill was introduced in the Lok Sabha on March 25, 2026, and referred to a Joint Parliamentary Committee (JPC) on August 12 for examination. It is still under consideration. Separately, the revised FCRA Rules were notified on June 22 and are already in force. The Rules specify permitted purposes and States/Union Territories of operation, introduce new disclosure requirements and prescribe conditions for demonstrating reasonable activity.
TIMELINE
1976: The Foreign Contribution (Regulation) Act (FCRA) was enacted to regulate the acceptance and utilisation of foreign contributions and hospitality.
1984: Registration with the Home Ministry became mandatory for associations receiving foreign funds. The definitions of “foreign contribution” and “political party” were broadened, and audit powers were added.
2010: The FCRA, 2010 replaced and consolidated the 1976 Act with a stronger compliance framework. It introduced five-year registration and renewal and a prior-permission route for one-time recipients. It received Presidential assent on September 26, 2010.
2011: The Foreign Contribution (Regulation) Rules were notified, setting out procedures for registration, designated accounts and reporting formats.
2020: A major amendment made Aadhaar or passport identification mandatory for specified office-bearers and functionaries. Foreign contributions were required to be received in a designated FCRA account at the State Bank of India, New Delhi Main Branch.
2022: The FCRA Rules were amended. The limit on contributions from relatives abroad was raised and provisions for compounding certain offences were introduced.
2024-25: Further amendments to the Rules allowed unspent administrative-expense allocations to be carried forward.
2026: The FCRA Amendment Bill proposes a Designated Authority to supervise, manage and dispose of foreign contribution and assets when an organisation ceases to have an FCRA certificate. The FCRA Amendment Rules, notified in June, specify 105 permitted purposes, require organisations to identify their States/UTs of operation and prescribe additional disclosure and utilisation requirements.
What is the Foreign Contribution (Regulation) Amendment Bill, 2026?
It is a proposed amendment to the Foreign Contribution (Regulation) Act (FCRA), the law that governs how Indian individuals, associations and companies may receive and use money, securities or articles sent to them from a source outside India.
The Bill was introduced in the Lok Sabha on March 25, 2026. It proposes changes mainly relating to the continuation of FCRA registration, foreign-funded assets, prior permission, key functionaries and investigations.
Who administers FCRA and what does it regulate?
The Ministry of Home Affairs (MHA) administers FCRA. The law identifies who can accept foreign donations and under what conditions. It specifies how the money is to be received, accounted for and reported.
It also restricts the use of foreign contributions for activities considered detrimental to national interest, including activities affecting the sovereignty and integrity of India, security, strategic, scientific or economic interests, public interest and communal harmony.
Is this the first amendment to FCRA?
No. Under the Manmohan Singh-led United Progressive Alliance (UPA) government, India replaced the original 1976 Foreign Contribution (Regulation) Act with the FCRA, 2010.
The 2010 law introduced a five-year registration and renewal system and strengthened oversight of foreign funding. It also introduced the prior-permission route for organisations seeking foreign funds for a specific purpose or from a specific source.
Why has the 2026 Bill attracted opposition?
Since the Bill was introduced, it has attracted protests and appeals from opposition parties, various Christian organisations and civil society groups. Amid significant opposition and civil society concerns, the Bill was referred to a Joint Parliamentary Committee for detailed review.
Critics are particularly concerned about the proposed vesting of foreign-funded assets when an organisation loses or does not renew its FCRA registration, the absence of a specific appeal mechanism against refusal of renewal and the wider responsibilities proposed for key functionaries.
What did Christian organisations and church leadership do after the Bill was introduced, and what assurance did Union Home Minister Amit Shah give them?
Christian organisations and other minority delegations met Amit Shah and raised concerns over the proposed changes. Shah assured the delegations that the Bill was religion-neutral and was not intended to target minority institutions.
What is the “no-aid” policy mentioned in discussions on foreign assistance?
India has traditionally followed a policy of relying on its own resources for disaster relief rather than accepting foreign government assistance. The policy became a subject of discussion during the 2018 Kerala floods, when the UAE was reported to have offered assistance.
The issue should not, however, be described as a general policy of the Manmohan Singh government to “not accept foreign aid”. India continued to receive foreign assistance in several forms, and the policy relating to foreign government disaster assistance has evolved over time.
What changes do the 2026 Rules make to FCRA registration?
The amended Rules require organisations to specify the purpose or purposes for which foreign funds will be used and the States or Union Territories where the activities will be undertaken.
The Rules provide a Schedule containing 105 permitted purposes under five broad categories — cultural, economic, educational, religious and social. Organisations seeking to add a new purpose or State/UT will have to seek approval and pay the prescribed fee.
Existing associations have been given a period to intimate the purposes and States/UTs they wish to retain.
What do the revised Rules say about religious purposes and proselytisation?
The amended Rules expressly list permissible religious purposes. These include the construction, renovation and maintenance of places of worship; preservation and translation of sacred scriptures; religious education and moral instruction; pilgrim amenities; community kitchens and preservation of religious traditions.
Some activities are expressly qualified as excluding proselytisation. The stated purpose is to provide greater clarity on the activities for which foreign funds can be used.
What condition applies to NGOs renewing FCRA registration?
The amended Rules define “reasonable activity” for the purpose of renewal and cancellation. An organisation is deemed to have undertaken reasonable activity if it has utilised at least ₹10 lakh of foreign contribution during the previous two financial years for its permitted purpose.
This is significant because the parent Act allows cancellation where an organisation has not undertaken reasonable activity for the benefit of society in its chosen field for two consecutive years. The Rules now prescribe a monetary test for determining reasonable activity.
What other information will organisations have to disclose?
The amended Rules require additional information in registration and renewal-related forms. This includes details of activities undertaken and funds utilised in recent financial years, the organisation’s website and social-media accounts, and information relating to its key functionaries.
The Rules also require information relating to publications and other activities of the organisation and its key functionaries.
Can organisations change their purpose or State of operation?
Yes, but they cannot simply do so without approval. An organisation seeking to add or delete a purpose or a State/UT from its registration must apply to the Central government in the prescribed form and pay the applicable fee.
Does the Bill increase the maximum imprisonment for FCRA violations?
No. It reduces the maximum imprisonment for contravention of the FCRA from five years to one year.
The Bill also provides that prior approval of the Central government will be required before an investigation into an offence under FCRA is initiated.
What is proposed for State governments and agencies investigating FCRA matters?
The Bill proposes that prior approval of the Central government will be required before an investigation for an offence under FCRA is initiated.
The stated rationale is to ensure greater coordination and control over investigations under a law dealing with foreign funding.
What happens when an organisation’s registration ends or is not renewed?
Under the Bill, an FCRA certificate will cease if it is not renewed before expiry, if no renewal application is made or if the renewal application is denied.
This is important because the Bill links cessation of registration to the vesting of foreign contributions and assets created wholly or partly from foreign contributions in a Designated Authority.
What happens to assets created from foreign funds?
The 2010 Act already provided for foreign contribution and assets created from such contribution to vest in an authority in cases where registration was surrendered or cancelled.
The 2026 Bill expands and restructures this mechanism. It proposes that when an FCRA certificate ceases, including because it is not renewed or renewal is denied, foreign contribution and assets created wholly or partly from foreign contribution will vest provisionally in a Designated Authority.
If the organisation subsequently obtains, renews or restores its registration, the relevant foreign contribution and assets are to be returned.
If this does not happen within the prescribed period, the vesting can become permanent. Permanently vested assets are to be used for public purposes. They may be transferred to government authorities or disposed of, with the proceeds going to the Consolidated Fund of India.
Does this mean all assets of an organisation can be taken over?
No. The Bill deals with foreign contribution and assets created wholly or partly from foreign contribution.
However, this raises a practical question for organisations that have used a combination of domestic and foreign funds to create assets such as schools, hospitals, offices or other facilities. Determining which portion of an asset was created with foreign contribution may not always be straightforward. This is one of the concerns raised about the proposed system.
What happens to a place of worship?
The Bill specifically provides protection for the religious character of a place of worship that is permanently vested in the Designated Authority.
The Authority must ensure that its religious character is maintained. It may entrust the management of such a place of worship to a person or authority in the prescribed manner.
What happens to the money if assets are sold?
If assets that have been permanently vested are disposed of, the proceeds, along with unutilised foreign contribution, are to be credited to the Consolidated Fund of India.
The Bill requires permanently vested assets to be used for public purposes. The proceeds therefore do not become the personal property of any government official or authority.
(This is first part of a two-part explainer series on the FCRA Bill Amendments, 2026.)