What do the amended FCRA Rules say?

How does the Ministry of Home Affairs regulate foreign donations? What are the key changes in the FCRA Amendment Rules, 2026? How do the new Rules affect the purposes for which NGOs can receive foreign funds? What penalties apply for violations?

File photo of Opposition MPs demanding the withdrawal of the Foreign Contribution (Regulation) Amendment Bill, 2026. ANI

Vijaita Singh

The story so far:

On June 22, the Union Ministry of Home Affairs (MHA) notified the Foreign Contribution (Regulation) Amendment Rules, 2026, to amend the Foreign Contribution (Regulation) Rules, 2011.This is the tenth amendment to the Rules under the Foreign Contribution (Regulation) Act, 2010 (FCRA).

How does the MHA regulate foreign donations?

The MHA regulates foreign donations in India 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 In 2010, it was repealed and replaced with a new legislation.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.

What are the broad amendments proposed to the FCRA Rules?

All NGOs and associations registered under the FCRA, 2010, are required to disclose their specific activities and the geographical scope of their programmes. The Rules no longer allow general permission under the FCRA and indicate tighter scrutiny on how NGOs utilise foreign funds.

Any new registration will have to follow the said norms. The Rules further broaden 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.

They also require 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 books, magazines or newspaper articles.

The Rules also impose a fee for registration for each specified purpose and for each State or Union Territory (U.T.) in which an NGO operates. So, NGOs operating across multiple sectors or regions now face higher registration costs.

What amendments apply to the programmes or purposes 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 new registrations shall specify the purpose or purposes for which registration is granted, chosen only from the list of purposes as specified in the Schedule appended to the rules; and the States or U.T.s in which the NGO proposes to undertake activities.

Those with existing FCRA registrations are expected to update the purpose and intimate the Central government within a year. Some categories specifically exclude political activities.

The educational purpose lists 22 activities, but adds the qualifier “strictly non-political in nature” to the category covering awareness programmes on constitutional rights, fundamental duties, and civic responsibilities.

Under cultural purpose, there are 18 categories, including “promotion of contemporary arts inspired by Indian traditions.” The Rules specify that these must exclude political or 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 the economic purpose and 30 items under the social category.

What are the penalties for violations?

The MHA has also notified an order specifying penalties for FCRA violations, including excess administrative spending, speculative investments, misuse of funds, unauthorised receipt or utilisation of foreign contributions, and the use of funds for unapproved purposes or in States/U.T.s not covered by an NGO’s registration or prior permission.

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. Likewise, using foreign contributions for purposes or in areas not covered by an NGO’s registration or prior permission invites a penalty of 30% of the amount involved or ₹1 lakh, whichever is higher.

In addition, spending beyond the permitted administrative expense limit or engaging in speculative use of funds will be penalised with fines calculated as a percentage of the amount involved, subject to a minimum of ₹1 lakh.

What is the Opposition saying?

Opposition members have said that the new Rules will adversely affect the functioning of civil society organisations. Congress General Secretary (Organisation) K.C. Venugopal said that forcing NGOs to choose from a “rigid, government-mandated list” of activities and restricting their operational geography would undermine their ability to respond to emergencies. John Brittas, Communist Party of India (Marxist) Rajya Sabha member, wrote to Home Minister Amit Shah raising constitutional concerns. “Collectively, these changes signify a decisive shift from regulating foreign contribution to regulating voluntary organisations themselves,” he wrote.

The Rules impose a fee for registration for each specified purpose and for each

State or U.T. in which an NGO

operates

Check this out: What do the amended FCRA Rules say?

https://epaper.thehindu.com/ccidist-ws/th/th_delhi/issues/191528/OPS/GUVG625VK.1+G0IG63VJH.1.html?rev=2026-06-28T00%3A41%3A05%2B05%3A30