Foreign Contribution (Regulation) Amendment Bill, 2026

Christian organisations and minority groups, particularly in the Northeast, fear the provisions could affect churches, schools, hospitals and charitable institutions funded through foreign contributions. Mizoram CM Lalduhoma, Meghalaya CM Conrad K. Sangma and Nagaland CM Neiphiu Rio, have also raised concerns over its potential impact on religious, educational and charitable institutions. Nagaland CM Neiphiu Rio has sought Joint Parliamentary Committee scrutiny and wider consultation, while the Government maintains that the Bill is religion-neutral and aims to strengthen transparency, accountability and oversight.

What is FCRA?

The Foreign Contribution (Regulation) Act (FCRA) is the principal law governing the receipt and utilisation of foreign contributions in India. It regulates foreign donations, securities and articles received by individuals, associations, NGOs, trusts and other eligible entities from sources outside India. The Act is administered by the Ministry of Home Affairs (MHA). Its basic purpose is to ensure that foreign money entering India is transparent, traceable and properly utilised, while preventing foreign funding from adversely affecting India’s sovereignty, security, democratic institutions, public order and national interest.

Why is Regulation of Foreign Contributions Necessary?

In an increasingly interconnected world, international funding supports activities such as education, healthcare, disaster relief, scientific research, environmental conservation and community development. At the same time, foreign financial flows can create concerns relating to transparency, foreign influence, national security, democratic institutions, religious conversions, demographic changes and can create imbalance in the election process, etc.

Core Objectives of FCRA -

The FCRA framework rests on five broad objectives.

● Transparency requires organisations to disclose foreign contributions and their utilisation.

● Accountability is ensured through audited annual returns and financial records.

● Sovereignty is protected by regulating foreign contributions that may adversely affect national security, public order, religious conversion and democratic institutions.

● Enabling genuine work allows foreign contributions to be used for legitimate activities such as education, healthcare, poverty alleviation and disaster relief.

● Finally, public confidence is strengthened when citizens and beneficiaries know that foreign funding is properly registered, disclosed and audited.

How Does FCRA Work?

1. Registration & Prior Permission

● Organisations can receive foreign contributions through: -

FCRA Registration - for eligible organisations. -

Prior Permission - for a specific donor, amount and project.

2. Designated Bank Account

● Foreign contributions must first enter the designated SBI, New Delhi Main Branch FCRA account.

● Ensures a traceable and verifiable financial trail.

3. Declared Purpose & Utilisation

● Funds must be used only for the declared purpose for which they were received.

● Maximum 20% can generally be spent on administrative expenses.

4. Annual Reporting & Audit

● Organisations must file annual audited returns (Form FC-4).

● Returns disclose donors, amounts received and utilisation of funds.

5. Five-Year Registration

● FCRA registration is generally valid for 5 years.

● It must be renewed after compliance review.

Who Cannot Receive Foreign Contributions?

The FCRA prohibits certain categories from receiving foreign contributions, including:

● Election candidates

● Members of legislatures

● Judges

● Government servants

● Political parties

● Certain editors/publishers of newspapers engaged in news reporting

What does the FCRA Amendment Bill, 2026 propose?

The proposed amendment introduces a mechanism through a ‘Designated Authority’ to deal with foreign contributions and assets of an organisation when its FCRA registration ceases, is cancelled, surrendered or expires without renewal. Under the proposal, foreign contributions received by such an organisation and assets created out of those contributions would vest in the Designated Authority. The authority would have powers to take control and, where necessary, manage such assets and monitor the activities of the concerned organisation. If the organisation does not regain its FCRA registration within the prescribed period, the assets could subsequently be transferred permanently under the proposed framework.

Key Provision:

Section 14B - Cessation of FCRA Certificate

Section 14B is one of the major areas of concern. It defines circumstances in which an FCRA certificate would be considered to have ceased, including cases where an organisation does not apply for renewal, its renewal application is refused, or its certificate expires without renewal. The provision is significant because cessation of the certificate would trigger the proposed mechanism under which foreign contributions and assets created from them could come under the control of the Designated Authority.

Section 16A - Vesting of Foreign Funds and Assets

Section 16A provides for foreign contributions and assets of an organisation whose FCRA certification has ceased to be vested in the Designated Authority. This is particularly controversial because the provision could result in the government exercising control over assets that were created using foreign contributions received by an organisation during the period when it had valid FCRA registration. Critics argue that the provision gives the executive substantial powers over NGOs and voluntary organisations.

Section 16B - Retrospective Application

Section 16B is another major point of contention as it proposes to apply the new framework to assets that may already have vested under the earlier law. Opposition parties fear that this could have a retrospective or adverse impact on organisations whose FCRA registrations ceased or lapsed several years ago but which may currently be functioning using domestic funds. The provision has therefore raised questions concerning legal certainty, property rights and the retrospective application of regulatory provisions.

Concerns Raised by Christian and Other Minority Organisations -

The proposed amendments have triggered concerns among Christian organisations and church bodies, particularly in the Northeastern states. Nagaland Chief Minister Neiphiu Rio wrote to Union Home Minister Amit Shah, expressing apprehension that the proposed FCRA amendments could significantly affect Christian organisations engaged in education, healthcare, social services, welfare programmes and humanitarian activities. He requested that the Bill be referred to a Joint Parliamentary Committee (JPC) and called for wider stakeholder consultation before its passage.

The issue is particularly significant in the Northeast because of the region’s large Christian population. Nagaland has around 87.93% Christians, Mizoram around 87%, and Meghalaya around 74%. Many church-affiliated organisations in these states run schools, hospitals, orphanages, homes for the elderly and other charitable institutions, making them potentially affected by stricter regulation of foreign-funded organisations.

FCRA and Global Practice -

India’s FCRA framework can be compared with foreign-influence and foreign-funding laws in other democracies. The United States has the Foreign Agents Registration Act (FARA), 1938, which requires disclosure by persons acting on behalf of foreign principals in specified activities. The United Kingdom introduced the Foreign Influence Registration Scheme under the National Security Act, 2023, which came into force in 2025 and Canada enacted the Foreign Influence Transparency and Accountability Act, 2024. These frameworks broadly reflect a global emphasis on transparency and disclosure concerning foreign influence.