FCRA (Foreign Contribution Regulation Act)

The Foreign Contribution (Regulation) Act (FCRA) regulates the receipt and utilisation of foreign contributions (money, articles, securities) by Indian NGOs, associations, companies, and individuals. Originally enacted in 1976 during the Emergency, it was comprehensively replaced by the FCRA 2010, which is the current governing law. Under FCRA, any organisation or person wishing to receive foreign contributions must obtain prior registration or permission from the Ministry of Home Affairs (MHA). The registration is valid for five years and must be renewed. All foreign contributions must be received in a designated FCRA account at the State Bank of India, New Delhi Main Branch. Annual returns must be filed disclosing all receipts and expenditure. The FCRA 2020 Amendment introduced significant restrictions: administrative expenses were capped at 20% (down from 50%), sub-granting of foreign funds to other organisations was prohibited, Aadhaar was made mandatory for key functionaries, and MHA's powers of inspection and cancellation were enhanced. The FCRA Amendment Bill 2026 further proposes 'deemed cessation' provisions (NGO ceases to exist for purposes of holding foreign-origin assets when registration lapses), government takeover of assets, enhanced criminal penalties (up to 7 years), and retrospective application to organisations whose registration lapsed in the preceding 5 years. As of 2025, approximately 16,000 NGOs hold active FCRA registration (down from ~33,000 in 2020), receiving approximately Rs 22,000 crore in annual foreign contributions.

• 1 Original: FCRA 1976 (during Emergency); current: FCRA 2010
• 2 2020 Amendment: 20% admin cap, sub-granting ban, SBI Delhi mandatory, Aadhaar required
• 3 2026 Bill: Deemed cessation, asset seizure, enhanced penalties, retrospective application
• 4 Administering ministry: MHA; designated bank: SBI New Delhi Main Branch
• 5 Registration: Valid 5 years; renewal required; ~16,000 active NGOs (2025)
• 6 Annual foreign contributions: ~Rs 22,000 crore
• 7 Cancelled/not renewed (2020-2025): ~17,000 registrations
• 8 Constitutional concern: Article 19(1)(c) (freedom of association), Article 300A (property)
• 9 Major cases: Amnesty India (accounts frozen 2020), Greenpeace India (suspended 2015)

The 2020 FCRA Amendment's prohibition on sub-granting effectively cut off thousands of smaller grassroots NGOs that received foreign funds through larger intermediary organisations, fundamentally restructuring how international development aid reaches India's rural communities.