Foreign Contribution (Regulation) Amendment Bill, 2026

Why in News?

Recently, The Foreign Contribution (Regulation) Amendment Bill, 2026 was introduced in Lok Sabha.

• Aim – The Bill seeks to strengthen regulation of foreign contributions and ensure accountability in their utilisation, while safeguarding public interest.

Foreign contribution is the donation or transfer of any currency, security, or article (beyond a specified value) by a foreign source.  

Foreign sources are the Governments of foreign countries or their agencies, foreign companies, trusts, or societies, and citizens of foreign countries.

• Nodal Ministry – Ministry of Home Affairs.
• Objectives – Asset Control - Creating a legal framework to manage assets (land, buildings, funds) of NGOs after registration ends.
• Leader Accountability - Making directors and trustees personally responsible for the use of foreign money.
• Internal Security - Blocking foreign funds from being used for forced conversions or anti-national activities.
• Streamlined Process - Setting clear timelines for fund usage and centralising investigations for efficiency.
• Compliance focus - Reducing jail terms to shift from a punitive system to a reporting-based one.

Key Features

• Vesting of foreign contribution and assets in certain cases – Registration ceases if renewal is not applied, denied, or expired.
• In such cases, foreign contributions, and assets (even partly foreign-funded) vest provisionally in a designated authority.
• Return of foreign contribution and assets if temporarily vested – The Designated Authority may use funds to manage assets but must return unutilised contributions and assets upon renewal, restoration, or fresh registration.
• Utilisation of contribution and assets permanently vested - Assets vest permanently if registration is not renewed or entity ceases to exist.
• They must be applied for public purposes, transferred to government bodies, or disposed of, with proceeds credited to the Consolidated Fund of India.
• Duties of persons whose foreign contributions and assets are vested – Persons must allow inspection of records, avoid asset transfers without approval, and maintain assets under Authority supervision.
• Appeals against orders of Authority – Aggrieved persons may appeal to the District Judge within 90 days.
• Powers to exempt – The central government may exempt persons from vesting provisions in public interest.
• Prohibition on accepting foreign contribution – Prohibition extends to any person engaged in production or broadcast of news or current affairs, in addition to candidates, parties, judges, legislators, and publishers.
• Offences and penalties – Maximum imprisonment reduced from five years to one year.
• Prior government approval required before investigation.

Reference

PRS India | Foreign Contribution (Regulation) Amendment Bill