- Why in news
- On 22 July 2026 PIB issued an FAQ on the FCRA, explaining the FCRA Amendment Bill, 2026 (introduced in Lok Sabha on 25 March 2026) and the revised Rules notified on 22 June 2026.
- What it is
- The Foreign Contribution (Regulation) Act, 2010 regulates how individuals, associations and companies accept and use foreign contribution. It is administered by the Ministry of Home Affairs and replaced the 1976 Act. It requires registration or prior permission, a designated bank account and annual returns, and bars certain persons from taking foreign funds.
- Administering ministry
- The Act is administered by the Ministry of Home Affairs.
- Registration and account
- Registration certificates are valid for five years. All foreign contribution must first come into one FCRA account at SBI's New Delhi Main Branch.
- Persons barred
- Election candidates, legislators, judges, public servants, political parties and their office-bearers, and others listed in Section 3 cannot receive foreign contribution.
Don’t confuse with FCRA vs FARA: FCRA is India's law on foreign contribution; FARA is the US Foreign Agents Registration Act of 1938.
Don’t confuse with Provisional vs permanent vesting: Provisional vesting is returned if registration is restored. Permanent vesting is proposed in the 2026 Bill if it is not restored in the prescribed period.
Laws, judgments and statutory bodies: 30 Prelims questions since 2013 (what the law says, who chairs, legal basis). In Mains, 44 news-triggered questions, most in GS2, asking for provisions and challenges.
Why it matters
- Gives a traceable channel for foreign funds and guards sovereignty, public order and electoral processes.
- Disclosure down to the ultimate foreign donor and project-wise returns improve accountability.
Problems
- Critics fear heavy compliance and discretionary cancellation may restrict civil society work.
- State authorities have found it hard to take over, maintain and manage vested assets.
Way forward
- Keep reasoned orders, time-bound processes and effective appeal and judicial review.
- Provide simple online compliance and clear rules to protect genuine NGOs.
Put in your answer
Scale of FCRA sector, 2024-25: About 16,200 associations were actively registered and received about Rs 22,963 crore in 2024-25.
Cancellations over a decade: Nearly 22,000 registrations were cancelled and about 15,000 deemed ceased over the last decade.
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Single answer
Ours, not from a UPSC paper
Consider the following statements about the Foreign Contribution (Regulation) Act, 2010 (FCRA) and the changes in 2026: 1. The Act is administered by the Ministry of Home Affairs. 2. An FCRA registration certificate is valid for ten years. 3. Under the 2026 Bill, orders of the Designated Authority can be revised within 90 days, with a further appeal to the District Judge. 4. The 2020 amendment raised the ceiling on administrative expenses from 20% to 50% of foreign contribution. 5. Under the 2026 Bill, state agencies must get central government approval before starting FCRA investigations. 6. The Act imposes a general prohibition on NGOs receiving foreign donations.
How many of the above statements are correct?
True or false?
1 of 4
Statements the way Prelims prints them. Say first, then see the fact.
1.Under the FCRA, an FCRA registration certificate is valid for ten years.
False. Registration certificates are valid for five years and must be renewed.
2.The concept of vesting of assets created out of foreign contribution upon cancellation was first introduced in the 2010 Act.
True. It was introduced in the FCRA of 2010 (Section 15).
3.The 2020 amendment raised the ceiling on administrative expenses from 20% to 50% of foreign contribution.
False. It cut the ceiling from 50% to 20%.
4.The 2026 Rules require NGOs seeking renewal to show use of at least Rs 10 lakh of foreign contribution over the previous two years.
True. Minimum utilisation of Rs 10 lakh over two years.
Written by us from the release, not by UPSC; checked by a second model.
Mains practice
15 marks · 250 words
The PIB has issued an FAQ explaining the Foreign Contribution (Regulation) Amendment Bill, 2026 and the revised FCRA Rules notified in June 2026. Examine the main provisions of the FCRA regime, as amended, and discuss the balance it seeks between national security and transparency on one hand and the freedom and functioning of civil society organisations on the other.
Worth revising until Prelims 2028: most news questions come within two years of the event.