The Story so far: The Union Ministry of Home Affairs (MHA) notified the Foreign Contribution (Regulation) Amendment Rules, 2026 on June 22, 2026 to amend the Foreign Contribution (Regulation) [F-C] Rules, 2011.
The Rules enable an Act passed by the Parliament to be implemented and must be notified in the Gazette of India. The principal F-C Rules were published in the Gazette on April 29, 2011 and have subsequently been amended nine times in the years 2015, 2019, 2020, 2022, 2023, 2024 and the latest on May 26, 2025. This is the tenth amendment to the Rules under Foreign Contribution (Regulation) Act, 2010 (FCRA).
The MHA regulates foreign donations in the country through the FCRA to ensure that such funds do not adversely affect the country’s internal security. The legislation was first enacted in 1976. In 2010, it was repealed and replaced with a new legislation. The 2010 Act came into force on May 1, 2011 and has been amended in 2016, 2018, and 2020. The FCRA registration is valid for five years, after which the NGO has to apply for a renewal. Since 2015, the FCRA registrations of more than 18,000 NGOs have been cancelled. As on June 22, there are 14,456 FCRA-registered NGOs active in the country. MHA has said the FCRA registered NGOs receive approximately ₹22,000 crore annually.
What are the broad amendments proposed to the FCRA Rules?
All Non-government Organisations (NGOs) and associations registered under FCRA, 2010 are required to disclose specific activities and geographical scope of their programmes.
The Rules no longer allow general permission under FCRA and indicate tighter scrutiny on how NGOs utilise foreign funds.
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Any new registration will have to follow the said norms. The Rules further broadens the definition of “key functionary” of an NGO beyond office bearers and directors to include trustees, partners, the Karta of a Hindu Undivided Family, governing body members, or anyone controlling or managing the organisation.
It also requires NGOs to mandatorily disclose social media accounts, websites and declare whether the association or its key functionaries has brought out any publication during the year, which includes book, magazine or a newspaper article. It also imposes a fee to operate for each specified purpose and each State or Union Territory. NGOs operating across multiple sectors or regions will face higher registration costs.
What are the amendments regarding the programmes or purpose for which an NGO intends to receive foreign donations?
NGOs can receive foreign contributions for social, educational, religious, economic, and cultural programmes. The amended Rules state that the certificate of registration or the application form (for fresh registrations) shall specify the purpose or purposes for which registration is granted, chosen only from such list of purposes as specified in the Schedule appended to the rules; and the States or Union Territories in which the NGO proposes to undertake the activities.
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Those with existing FCRA registrations shall, within one year, update the purpose and intimate the Central government. Some categories specifically exclude political activities.
The “educational” purpose lists 22 activities but adds the clause “strictly non-political in nature” after the category on “awareness programmes on constitutional rights, fundamental duties, and civic responsibilities.”
The “cultural” purpose lists “promotion of contemporary arts inspired by Indian traditions” among 18 categories but adds “excluding political/ ideological content.”
As many as 16 categories of religious activities have been permitted which includes “conduct of religious education, moral instruction, satsangs, discourses, and meditation retreats (excluding proselytisation)” and “burial/cremation ground development and maintenance.” There are 19 categories under “economic” purpose and 30 items under the “social” category.
Any other amendment proposed?
MHA notified another order which specifies the fines for FCRA violations such as excess administrative spending, speculative investments, misuse of funds, unauthorised receipt/use of foreign contributions, and using funds for unapproved purposes or in unapproved States/UTs.
Any utilisation of funds for purposes other than those for which they were received can attract a penalty of up to 30% of the amount misused or ₹1 lakh, whichever is higher. Similarly, using foreign funds for purposes or in areas not covered under the NGO’s approval or registration also invites a fine of 30% of the amount or ₹1 lakh, whichever is higher .In addition, spending beyond the permitted administrative expense limit or engaging in speculative use of funds is penalised with fines calculated as a percentage of the amount involved, subject to a minimum of ₹1 lakh.
Published – June 23, 2026 01:16 pm IST
