FCRA Amendment Rules 2026

Subject - GS Paper-II (Governance & Social Justice)

Subtopic - NGOs, civil society, and government policies.

Source - The Hindu (26th June 2026 - Page 8 - Editorial Section)

Onerous rules

Why in news: The Foreign Contribution (Regulation) Amendment Rules, 2026 have been notified, introducing stricter compliance requirements for NGOs registered under the Foreign Contribution (Regulation) Act (FCRA), 2010.

Key Provisions of the FCRA Amendment Rules, 2026

• NGOs registered under the FCRA, 2010 must confine their work to the activities specified for their category and to the States and Union Territories mentioned in their registration.
• NGOs must disclose their social media handles, websites, and publications.
• NGOs are barred from carrying "political content".
• The Rules impose stringent penalties for using foreign funds for unapproved purposes.
• NGOs must pay separate fees for each category of work and for each State or Union Territory where they operate, replacing the earlier single registration fee.

Concerns Regarding the New Rules

• The Rules increase compliance costs and paperwork for NGOs.
• The operation of the FCRA regime has been criticised as lacking transparency.
• More than 20,000 FCRA registrations have reportedly been revoked over the past decade on opaque grounds.
• The new Rules are viewed as creating a chilling effect by imposing greater barriers and commitments on NGOs.
• Earlier proposals allowing a government-appointed authority to take over the assets of NGOs with cancelled, surrendered, or non-renewed registrations were put on hold after protests.

Judicial Background

• In Noel Harper (2022), the Supreme Court upheld the 2020 FCRA amendments, accepting the government's arguments relating to sovereignty and national security.
• In 2020, the Supreme Court read down rules that would have classified rights activism, protests, and demonstrations as work "of a political nature".
• The Court distinguished party politics from the everyday work of social and economic betterment.
• The new Rules treat advocacy and "political content" as grounds for disqualification.

Way Forward

• The Centre should withdraw the punitive provisions, particularly those relating to multiple fees and political content.
• A fairer regulatory framework should balance transparency, national security, and the functioning of civil society organisations.

Mains Value Addition:

What is the FCRA?

• Origin: Enacted in 1976 during the Emergency to prevent foreign entities from funding organizations to meddle in India's domestic affairs.
• Current Law: The 1976 Act was repealed and replaced by the stronger FCRA, 2010, which was further tightened by amendments in 2020.
• Nodal Ministry: It is implemented by the Ministry of Home Affairs (MHA), as it is primarily an internal security legislation.
• Core Mandate: It regulates the acceptance and utilization of foreign contributions (donations) and hospitality by individuals, associations, or companies to ensure they are consistent with the values of a sovereign democratic republic.

Key Provisions & Compliance (FCRA 2010 & 2020 Amendments)

• Mandatory Registration: Any NGO, society, or charitable trust seeking foreign funding must register under the FCRA. Registration is valid for 5 years and must be renewed 6 months before expiry.
• Designated Bank Account: All foreign funds must initially be received in a single, exclusive "FCRA Account" at the State Bank of India (SBI), New Delhi Main Branch. (Other accounts can be used for utilization, but receipt must be at SBI).
• Aadhaar Mandate: It is mandatory for all office bearers, directors, or key functionaries of an NGO to provide their Aadhaar number (or passport/OCI card for foreigners) for identification.
• Ban on Transfers (Sub-granting): A major 2020 amendment completely prohibits the transfer of foreign funds from one FCRA-registered NGO to another person or organization.
• Administrative Expense Cap: The proportion of foreign funds that can be used for administrative expenses (like salaries or office maintenance) was reduced from 50% to 20%.

Prohibition on Acceptance

To insulate India's democratic institutions and public administration from foreign influence, the Act explicitly bars certain categories of people from receiving foreign contributions:

• Election candidates and members of any legislature (MPs/MLAs).
• Political parties and their office bearers.
• Judges and government servants (the 2020 amendment specifically added "public servants" as defined under the IPC).
• Publishers, editors, or cartoonists of registered news media.

Points of Difference	FCRA 2010	FCRA 2020 / New Rules
Administrative Cap	Up to 50% of funds	Capped at 20% of funds
Fund Transfers	Allowed to other FCRA NGOs	Prohibited entirely
Bank Account	Any scheduled bank	Mandatory receipt at SBI New Delhi
Personal Identity	Standard KYC	Aadhaar mandatory for functionaries