Foreign Contribution (Regulation) Amendment Bill, 2026

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Last edited July 23, 2026


Foreign Contribution (Regulation) Amendment Bill, 2026
State Emblem of India
Parliament of India
Legislative history
BillThe Foreign Contribution (Regulation) Amendment Bill, 2026
Bill published on25 March 2026
Introduced byMinistry of Home Affairs
Related legislation
Foreign Contribution (Regulation) Act, 2010
Status: Pending

The Foreign Contribution (Regulation) Amendment Bill, 2026 is a proposed amendment to the Foreign Contribution (Regulation) Act, 2010 introduced in the Lok Sabha on 25 March 2026 by the Ministry of Home Affairs. The Bill seeks to create a framework for the supervision, management and disposal of foreign contributions and assets of organisations whose FCRA registration certificate is cancelled, surrendered or ceases to be valid, and to rationalise penalties under the Act.[1]

As of July 2026 the Bill remains pending before Parliament and has been listed for consideration during the Monsoon Session.[2]

Background[edit | edit source]

The Foreign Contribution (Regulation) Act, 2010 regulates the acceptance and utilisation of foreign contribution and foreign hospitality in India. Registration under the Act is valid for five years and must be renewed. Over the years successive governments have amended the Act and its rules to tighten monitoring of foreign funds flowing to non-governmental organisations, citing concerns of national security, sovereignty and transparency.[3]

In 2024–25 approximately 16,200 associations received ₹22,963 crore in foreign contributions under the FCRA regime.[4]

Key provisions[edit | edit source]

The Bill amends several sections of the 2010 Act and inserts a new Chapter IIIA dealing with vesting of foreign contribution and assets.

Cessation of certificate[edit | edit source]

An FCRA certificate ceases to be valid if it is cancelled by the Central Government, surrendered by the organisation, not renewed before its expiry, or if a renewal application is not made or is refused. Cancellation may be ordered for reasons including incorrect statements, violation of conditions of the certificate, public interest, or failure to engage in reasonable activity for two consecutive years.[5]

Designated Authority and vesting of assets[edit | edit source]

The Bill establishes a Designated Authority to take provisional control of foreign contributions and of assets created wholly or partly out of foreign contributions when a certificate ceases. If registration is not restored, renewed or freshly granted within the prescribed period, the vesting becomes permanent. Permanently vested assets may be transferred to government departments or agencies or disposed of by sale, with the proceeds credited to the Consolidated Fund of India.[6]

Special provision is made for places of worship: the Designated Authority must ensure that their religious character is maintained and may entrust their management to prescribed persons.[7]

Orders of the Designated Authority are subject to revision by the Central Government and appeal before a District Judge.[8]

Key functionaries[edit | edit source]

The definition of “key functionary” is expanded to cover directors of companies, partners of firms, trustees, the karta of a Hindu undivided family, office-bearers and any person responsible for the management or control of the organisation. Key functionaries are made liable for offences committed by the organisation unless they prove that the offence was committed without their knowledge or that they had exercised all due diligence.[9]

Penalties and investigation[edit | edit source]

The maximum term of imprisonment for contravention of the Act is reduced from five years to one year. No investigation into an offence under the Act can be initiated by any agency without the prior approval of the Central Government.[10]

Prior permission[edit | edit source]

Foreign contribution received under the prior-permission route must be utilised within a time period prescribed for the specific purpose and source.[11]

Related Rules, 2026[edit | edit source]

On 22 June 2026 the Ministry of Home Affairs notified the Foreign Contribution (Regulation) Amendment Rules, 2026. These rules require registration certificates to specify the precise purpose and the state or Union Territory of operation, mandate demonstration of utilisation of at least ₹10 lakh of foreign contribution over the preceding two years for renewal, expand disclosure requirements (including social media accounts and ultimate donors), and ordinarily bar foreign nationals other than persons of Indian origin or Overseas Citizens of India from serving as key functionaries.[12]

Legislative history and status[edit | edit source]

The Bill was introduced in the Lok Sabha on 25 March 2026. Consideration was deferred amid protests by opposition parties. It has been listed among the bills to be taken up during the Monsoon Session of Parliament that began on 20 July 2026.[13][14]

Reception[edit | edit source]

The Central Government has stated that the Bill strengthens oversight of foreign funding, closes loopholes relating to assets of organisations that lose FCRA registration, and aligns Indian practice with global standards of transparency. It has clarified that the Designated Authority deals only with assets created from foreign contributions, that places of worship retain their religious character, and that the legislation does not target any particular religious community. Union Home Minister Amit Shah assured leaders of the Catholic Bishops’ Conference of India that the Bill would not be applied retrospectively.[15][16][17]

Civil society organisations and human rights groups have criticised the Bill and the accompanying Rules. Amnesty International has argued that the measures expand state control over the activities, operations and leadership of foreign-funded organisations and undermine the right to freedom of association.[18] The Catholic Bishops’ Conference of India and other Christian bodies have expressed concern about the possible impact on charitable and educational institutions and have urged withdrawal or substantial modification of the proposals.[19]

Opposition parties have described the Bill as draconian. On 1 July 2026 the Kerala Legislative Assembly passed a resolution urging the Central Government to withdraw both the Bill and the Amendment Rules, citing concerns relating to federalism, constitutional rights and the functioning of voluntary organisations in the state.[20] Several opposition leaders have called for an all-party meeting to discuss the legislation before it is taken up for consideration.[21]

See also[edit | edit source]

References[edit | edit source]

  1. ↑ "The Foreign Contribution (Regulation) Amendment Bill, 2026". PRS Legislative Research. 25 March 2026. Retrieved 23 July 2026.
  2. ↑ "Parliament Monsoon Session 2026: Legislative Reforms". SCC Online. 20 July 2026. Retrieved 23 July 2026.
  3. ↑ "Explained: How the FCRA regulates foreign funding and what the 2026 amendments mean". DD India. July 2026. Retrieved 23 July 2026.
  4. ↑ "Government allays fears over FCRA Bill, clarifies on designated authority". The Hindu. July 2026. Retrieved 23 July 2026.
  5. ↑ "The Foreign Contribution (Regulation) Amendment Bill, 2026". PRS Legislative Research. 25 March 2026. Retrieved 23 July 2026.
  6. ↑ "The Foreign Contribution (Regulation) Amendment Bill, 2026" (PDF). PRS Legislative Research. Retrieved 23 July 2026.
  7. ↑ "Government allays fears over FCRA Bill, clarifies on designated authority". The Hindu. July 2026. Retrieved 23 July 2026.
  8. ↑ "The Foreign Contribution (Regulation) Amendment Bill, 2026". PRS Legislative Research. 25 March 2026. Retrieved 23 July 2026.
  9. ↑ "The Foreign Contribution (Regulation) Amendment Bill, 2026". PRS Legislative Research. 25 March 2026. Retrieved 23 July 2026.
  10. ↑ "The Foreign Contribution (Regulation) Amendment Bill, 2026". PRS Legislative Research. 25 March 2026. Retrieved 23 July 2026.
  11. ↑ "The Foreign Contribution (Regulation) Amendment Bill, 2026". PRS Legislative Research. 25 March 2026. Retrieved 23 July 2026.
  12. ↑ "Centre amends FCRA rules for receiving foreign funds". The Hindu. June 2026. Retrieved 23 July 2026.
  13. ↑ "Parliament Monsoon Session 2026: Legislative Reforms". SCC Online. 20 July 2026. Retrieved 23 July 2026.
  14. ↑ "FCRA Bill 2026: Why opposition is protesting Centre's proposed foreign funding law". Moneycontrol. July 2026. Retrieved 23 July 2026.
  15. ↑ "Amit Shah assures church leaders that FCRA Bill will not be applied retrospectively". The Hindu. July 2026. Retrieved 23 July 2026.
  16. ↑ "FCRA bill aims to bolster oversight, not target any religion: Centre". Hindustan Times. July 2026. Retrieved 23 July 2026.
  17. ↑ "Curbs on foreign funding not uniquely Indian, says govt, cites laws elsewhere". The Times of India. July 2026. Retrieved 23 July 2026.
  18. ↑ "India: New foreign funding rules tighten control over civil society and undermine the right to freedom of association". Amnesty International. July 2026. Retrieved 23 July 2026.
  19. ↑ "Catholic bishops body urges Amit Shah to withdraw Foreign Contribution Regulation Amendment Bill". Press Trust of India. Retrieved 23 July 2026.
  20. ↑ "Kerala Assembly passes resolution urging Centre to repeal amendments to FCRA rules". The Hindu. 1 July 2026. Retrieved 23 July 2026.
  21. ↑ "Convene all-party meet on delimitation, FCRA bills: Derek O'Brien to PM Modi". ThePrint. July 2026. Retrieved 23 July 2026.

External links[edit | edit source]

Retrieved from "https://en.bharatpedia.org/w/index.php?title=Foreign_Contribution_(Regulation)_Amendment_Bill,_2026&oldid=552376"
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