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Centre Amends Rules for Receiving Foreign Funds

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June 25, 2026

Prelims: Current events of national and international importance | Polity & Governance

Why in News?

Recently, Home Ministry has amended the Foreign Contribution Regulation Act (FCRA) Rules, 2011, tightening accountability and disclosure norms for NGOs and associations receiving foreign funds.

  • Foreign Contribution (Regulation) Act (FCRA), 2010It is an Indian law regulating the acceptance and utilization of foreign funds or hospitality.
  • Enforced by - The Ministry of Home Affairs.
  • It ensures foreign contributions do not adversely affect national interests.
  • Non-governmental organizations (NGOs) – They are nonprofit, voluntary citizens' groups that operate independently of the government to address social, environmental, and humanitarian issues.
  • NGOs are typically registered under one of 3 legal structures – Societies, Trusts or Section 8 Companies.

Feature

FCRA Rules, 2011

2026 Amendment

Purpose

NGOs had flexibility in defining activities

NGOs must choose activities only from a predefined Schedule (religious, cultural, economic, educational, social) and

Location

No strict requirement to specify operational states/UTs.

specify exact States/UTs of operation.

Religious Activities

Religious activities permitted broadly.

  • Religious education, documentation, preservation of indigenous faith practices allowed.
  • Excluding proselytisation — explicitly mentioned for satsangs, discourses, meditation retreats, tribal rituals.

Associations with foreign nationals

No explicit restriction.

Associations with foreign nationals (other than persons of Indian origin) as key functionaries will ordinarily not be considered, unless specially permitted by Centre.

Definition of Key Functionary

Narrowly defined (main office bearers).

Broadened to include directors, partners, trustees, Karta of HUF, or anyone controlling management.

Financial Accountability

No minimum spending requirement for renewal.

NGOs must have spent at least Rs.10 lakh of foreign contribution in last two financial years to retain/renew registration.

Release of Funds

Subsequent instalments released without utilisation threshold.

Next instalment only after 75% utilisation of previous instalment, verified by field inquiry.

Disclosures

Annual returns included financial statements; limited activity details.

NGOs must disclose social media accounts, ultimate donor if funds routed via intermediaries, and submit detailed activity reports.

Media Restrictions

No specific prohibition.

NGOs/key functionaries prohibited from publishing or broadcasting news/current affairs.

Disclosures

NGOs only reported donor names as per receipts.

NGOs must disclose the original source/ultimate donor if funds come via intermediary remittance vehicles or Donor Advised Funds.

One‑Year Transition Window

No such requirement

Existing NGOs get 1 year to disclose their specific purposes and states in registration.

Proselytization (or proselytism) is the act of attempting to convert someone from one religion, belief, or opinion to another.

Reference

The Hindu | FCRA

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