The FCRA 2010 is a central law that regulates the acceptance and utilisation of foreign contributions and foreign hospitality in India. It governs foreign funding received by individuals, associations, NGOs, and companies. Its objective is to protect India’s sovereignty, integrity, and internal security from undue foreign influence.

About

• Nodal Authority: The FCRA is primarily an internal security legislation regulating foreign contributions. It is implemented and monitored by the Ministry of Home Affairs (MHA). 
• Origin and Evolution: The Act was originally passed in 1976 during the Emergency to prevent foreign influence. It was replaced by a stricter version in 2010, and amended in 2016, 2018, 2020, and 2026.
• Prohibited Categories: Specific entities are completely barred from receiving foreign funds. This includes election candidates, MPs/MLAs, political parties, judges, government servants, and news media professionals.
• Single Bank Account Rule: All foreign contributions must enter India through one specific location. They must be received in a designated “FCRA Account” at the State Bank of India (SBI), New Delhi Main Branch.
• Zero Transfers Allowed: The 2020 amendment introduced a complete ban on sub-granting. NGOs cannot transfer foreign funds to any other person or organisation, even if the receiver is also registered under FCRA.
• Validity Timeline: A standard FCRA registration is valid for 5 years. Online renewal applications must be submitted at least 6 months before the expiry date.

Key Highlights of the 2026 Amendment Rules

• Activity & State-Specific Rules: NGOs must now register for exact objectives and operational areas. They must pay separate fees for each activity category and each individual State/UT. Existing NGOs have one year to specify which areas they want to keep.
• Strict Prohibition on Conversion: Foreign funds can support faith-based work like worship, theological study, and community kitchens. However, the 2026 rules explicitly ban the use of foreign funds for proselytisation (conversion-oriented activities).
• Foreign Officials & Key Functionaries: Associations having foreign nationals (other than PIOs) as key functionaries will ordinarily not be considered for FCRA registration or prior permission. The definition of “key functionary” now includes directors, partners, trustees, and the Karta of a Hindu Undivided Family (HUF).
• New Spending Thresholds: To get further installments, an NGO must utilize at least 75% of its previous funds. Additionally, it must spend at least Rs 10 lakh on approved activities over two years to be eligible for a renewal.