• The FCRA was passed in 1976 due to concerns that foreign governments were funding independent organizations to meddle in India’s internal affairs.
  • The law aims to control foreign donations to organizations and people to ensure that they operate following the principles of a sovereign democratic republic.
  • FCRA registrations are granted to individuals or associations with definite cultural, economic, educational, religious, and social programs.
  • The FCRA requires every person or NGO seeking to receive foreign donations to be:
    • Registered under the Act,
    • To open a bank account for the receipt of foreign funds in the State Bank of India, Delhi,
    • To utilize those funds only for the purpose for which they have been received and as stipulated in the Act.
  • Exceptions
    • Under the FCRA, applicants must be genuine and cannot engage in forced or incentivized religious conversions. 
    • They must not have been charged or convicted of inciting communal conflict.
    • The Act also prohibits political parties, public officials, journalists, media organizations, judges, government employees, and politically affiliated groups from accepting foreign donations.
  • Previous Amendments 
    • The FCRA was revised in 2010 to “consolidate the law” on the use of foreign funds and “to prohibit” their use for “any activities detrimental to the national interest.” 
    • The 2020 amendment strengthened government oversight and control over how foreign donations to NGOs are received and used.
  • FCRA Amendment Rules 2026
    • NGOs must specify exact objectives and operational areas, with separate fees for each activity category and State/UT.
    • Foreign funds can be used for worship, religious education, heritage preservation, and community kitchens, but cannot be used for religious conversion.
    • Associations having foreign nationals (other than Persons of Indian Origin (PIOs) ) as key functionaries will “ordinarily not be considered” for registration or prior permission to receive funds.
    • NGOs must utilize at least 75% of previous funds before receiving further installments and spend at least Rs 10 lakh on approved activities over two years for renewal eligibility.
    • Mandatory disclosure of the ultimate donor, official websites, social media accounts, and publications to strengthen accountability.

 

Source: The Hindu

📄 Download PDF