Foreign Contribution (Regulation) Amendment Bill, 2026 | 25 Mar 2026

Source: TH 

Why in News? 

The Union government is set to introduce the Foreign Contribution (Regulation) Amendment Bill, 2026, to bridge legal gaps in the management of assets created through foreign funds and to streamline the accountability of NGO functionaries. 

What are the Key Facts Regarding the Proposed Foreign Contribution (Regulation) Amendment Bill, 2026? 

• Designated Authority for Assets: A key proposed change allows the government to appoint a "designated authority" to take over, manage, or dispose of assets created out of foreign funds by non-governmental organisations (NGOs) whose FCRA registration has been suspended, cancelled, or not renewed, addressing a previously existing legal gap. 
  • These could then be transferred or sold, with proceeds directed to the Consolidated Fund of India. 
• Expanded Definition of "Key Functionary": The definition now includes directors, partners, trustees, karta of Hindu Undivided Family (HUF), office-bearers of societies/trusts/trade unions, and any person with control over management, making them personally liable for offences unless they prove lack of knowledge or due diligence. 
• Prior Approval for Investigations: The Bill mandates that any law enforcement agency or State government must seek prior approval of the Central government before initiating investigation into FCRA-related complaints. 
• Timelines & Automatic Cessation: Proposes fixed timelines for receipt and utilisation of foreign funds under prior permission, automatic cessation of registration upon expiry or non-renewal, and clearer rules on asset handling during suspension. 
• Reduced Imprisonment: The Bill proposes reducing the maximum imprisonment for FCRA offences from 5 years to 1 year, alongside rationalised penalties.

What is the Foreign Contribution Regulation Act, 2010? 

• About: It is a central legislation enacted by the Government of India to regulate the acceptance, utilisation, and accounting of foreign contributions and foreign hospitality received by individuals, associations, and NGOs. 
  • The Act was originally enacted in 2010, came into force in 2011, and was amended in 2016, 2018, and 2020. It is administered by the Ministry of Home Affairs (MHA). 
  • Approximately 16,000 associations are registered under FCRA, receiving around Rs 22,000 crore annually. 
• Objectives: To ensure that foreign funds are not used for activities detrimental to the national interest, sovereignty, or public order of India. 
  • To prevent misuse of foreign funds for anti-national, political, or religious conversion activities. 
• Key Provisions and Features:  
  • Registration: No person or organisation can accept a foreign contribution without prior registration or specific prior permission from the Central Government. 
  • Eligibility for Registration: An organisation must: 
    • Be registered under the Societies Registration Act, 1860 or the Indian Trusts Act, 1882 or section 25 of the Companies Act, 1956. 
    • Have a proven track record of at least 3 years of relevant activities. 
    • Meet minimum expenditure thresholds (currently raised to Rs 15 lakh over the last 3 years). 
  • Designated FCRA Account: All foreign contributions must be received only in a single designated bank account opened with the State Bank of India, New Delhi (main branch). 
  • Utilisation Restrictions: Foreign funds cannot be transferred (sub-granted) to any other person or organisation unless they also hold valid FCRA registration. 
  • Registration Validity: Granted for 5 years and must be renewed before expiry (preferably at least 6 months in advance). 
• Prohibited Activities: Applicants must not represent fictitious entities, and they should have no history of communal tension, disharmony, or seditious activities. Additionally, the FCRA prohibits foreign funding for candidates for election, journalists, media persons, judges, government servants, politicians, and political organizations.