FCRA explained, and what the 2026 amendment Bill proposes

What is the FCRA?

The Foreign Contribution (Regulation) Act, 2010 controls who in India may accept foreign donations, and how they may spend them. It covers grants and donations to individuals, associations and companies, and aims to stop foreign money being diverted to activities “detrimental to national interest”, according to PRS Legislative Research’s summary of the law.

Who needs an FCRA licence?

Any organisation that wants to receive foreign contributions regularly needs an FCRA certificate, valid for five years and renewable. An organisation that needs foreign money only once can apply for prior permission instead. That route is limited to a specific purpose, source or amount.

The government can cancel a certificate for false statements, for breaking the Act or the terms of registration, in the public interest, or if the organisation has shown no reasonable activity for two years or become defunct. A 2020 amendment allowed organisations to surrender their certificates, with permission.

Under the current law, when a certificate is cancelled or surrendered, the foreign contribution and the assets created with it vest in an authority the government prescribes.

What does the 2026 Bill change?

It widens the cases in which foreign-funded assets pass to the government, and sets up a new authority to manage them. The Ministry of Home Affairs introduced the Bill in the Lok Sabha on 25 March 2026. Its main provisions, as summarised by PRS:

• Cessation of certificates: a certificate ceases if it is not renewed before it expires, if no renewal application is made, or if renewal is refused.
• A Designated Authority: a new body to take over, manage and dispose of the foreign contribution and assets of such organisations, including assets only partly built with foreign money.
• Two-step vesting: assets vest provisionally at first. If the organisation regains its certificate within a prescribed period, unused funds and assets are returned. If not, vesting becomes permanent.
• Use of assets: permanently vested assets must be used for public purposes. They may be transferred to central or state bodies, or sold. Sale proceeds and unused funds go to the Consolidated Fund of India.
• Places of worship: where a place of worship vests permanently, the authority must arrange its management and keep its religious character.

Who becomes liable for offences?

“Key functionaries” would be presumed liable unless they show they did not know of the offence or took due care. The Bill defines them as directors, partners, trustees, the Karta of a Hindu undivided family, office-bearers, governing body members and others responsible for management. If an organisation’s certificate ceases or it goes defunct, its last key functionaries must inform the government. If they do not, the assets vest permanently.

Are penalties going up or down?

Down. The Bill cuts the maximum prison term for offences under the Act from five years to one. It also requires the central government’s prior approval before any offence under the Act is investigated.

FCRA: current law and the 2026 Bill

• 5 yearsvalidity of an FCRA certificate before renewal
• 5 yrs to 1 yrmaximum prison term, current Act to Bill
• ₹10 lakhforeign contribution an organisation must use over two financial years to count as active for renewal, under the FCRA Amendment Rules, 2026
• 31members of the Joint Parliamentary Committee examining the Bill (21 Lok Sabha, 10 Rajya Sabha)

What concerns has PRS raised?

That organisations could lose assets even after they stop taking foreign money. PRS lists several issues for Parliament to consider:

• An organisation that stops renewing and now runs on domestic funds could still lose assets built with past foreign funds.
• There is no clean exit: keeping such assets may require renewing the certificate and continuing to spend.
• The ₹10 lakh activity threshold in the 2026 rules could cost smaller organisations their certificates and assets, even if they now run on Indian money.
• Assets built partly with foreign money vest in full, and recovering the domestic share depends on it being “distinct or ascertainable”.
• Assets received through the prior permission route do not vest on non-renewal, while those of certificate holders do.
• Neither the Act nor the Bill provides an appeal or a hearing before renewal is refused.

What do the parties say?

The Congress and the Samajwadi Party have asked for the Bill to be withdrawn; the government says it does not target minorities. Congress MP K.C. Venugopal sought its withdrawal when it was referred to the committee, and SP chief Akhilesh Yadav also opposed it, ThePrint reported on 12 August. Parliamentary Affairs Minister Kiren Rijiju said nothing in the Bill targets minority institutions, according to the same report.

Where does the Bill stand?

It is with a Joint Parliamentary Committee. The Lok Sabha referred it on 12 August 2026, near the end of the Monsoon Session. The committee is due to report by the last day of the first week of the Winter Session 2026, ThePrint reported. As of 11 October 2026, the Winter Session’s dates had not been announced.

FCRA Amendment Bill, 2026

1. 25 Mar 2026Introduced in the Lok Sabha by the Ministry of Home Affairs.
2. 12 Aug 2026Referred to a 31-member Joint Parliamentary Committee.
3. Winter Session 2026Committee report due by the end of the session's first week. Dates not yet announced.