The government has amended the Foreign Contribution Regulation Act (FCRA) rules requiring NGOs to choose from a predefined list of purposes and specify their area of operation. According to the latest notification from the Union Home Ministry, every application for registration shall mention the purpose or purposes for which registration is sought, chosen only from such list of purposes as specified in the Schedule appended to these rules, along with the states or Union territories in which the association proposes to undertake the activities. The details shall be specified on the certificate issued to the NGO. Applications will now have to select activities from a schedule in the rules that covers religious, cultural, economic, educational and social purposes. As per the notification, these amendments to the FCRA Rules, 2011 are aimed at tightening accountability in the way non-governmental organisations and associations in India receive and use foreign money.
The amended rules specify that three purposes must be carried out excluding proselytisation: religious education, documentation of faith traditions and preservation of indigenous beliefs, and documentation, preservation, and revival of indigenous and tribal faith practices, rituals and systems of worship. Under religious purposes, various activities have been listed ranging from construction, renovation, and maintenance of religious places, religious education to promotion of devotional music. The rules also restrict NGOs from producing or broadcasting news or current affairs. All associations registered before 2026 have been given one year to disclose to the government the specific purposes and states they want to retain in their registration. The notification states that religious education, documentation of faith traditions and preservation of indigenous beliefs must be carried out "excluding proselytisation".
According to the gazette notification issued on Monday (June 22, 2026), any association having foreign nationals, other than those of Indian origin, as its key functionaries will "ordinarily not be considered" for grant of registration or prior permission to receive foreign funds under the Act. The amended rules have broadened the definition of 'key functionary in relation to a person other than an individual' to cover a wide range of roles including company directors, partners in firms, trustees, the 'Karta' of a Hindu Undivided Family, and any person who has control over the management of the association. However, the notification kept a provision for the central government to allow such cases through a separate order. The rules also restrict NGOs from producing or broadcasting news or current affairs.
The government has revised the compounding penalties for various FCRA violations under section 41(1) of the Act. The penalty for defraying foreign contributions beyond 20% of the contributions received for administrative expenses will be ₹1 lakh or 5% of the amount spent beyond the limit, whichever is higher. The utilisation of foreign contribution in speculative activities will now attract a penalty of ₹1 lakh or 30% of the amount invested in such activities, whichever is higher, with 100% of the returns earned therefrom to be recovered. In case foreign contributions are utilised for purposes other than those for which they were received, a penalty of 30% of the amount utilised or ₹1 lakh, whichever is higher, shall be levied. Similar penalties will be imposed for accepting or utilising foreign contributions in contravention of the Act, or utilising funds for purposes or states where registration has not been granted.
The government has introduced a minimum spending limit of ₹10 lakh of foreign contribution on chosen activities over the last two financial years for NGOs to renew their registration or avoid cancellation. As reported by the latest notification, NGOs receiving foreign funds for specific purpose under 'Prior Permission' will only be released after utilising at least 75% of the previous instalment, with the government conducting a field inquiry to verify the utilisation. For renewal of registration or to avoid cancellation, an NGO must have spent that amount on its selected activities during that period. To prevent inactive NGOs from holding on to licences, the government has introduced this minimum spending requirement.
The amendments introduce a fee structure where an additional ₹300 will be charged for every extra state or purpose added to the application. According to the notification, NGOs receiving foreign funds must now provide details of their social media accounts in their applications for registration or renewal under FCRA. If funds come through intermediary remittance vehicles or Donor Advised Funds, the NGO must disclose the ultimate donor, or the original source of the money, in its application. Annual returns must now include a 'detailed activity report' alongside financial statements, and NGOs must declare if any books, articles have been published by them or their key functionaries. The rules also require NGOs to provide details of their social media accounts while applying for registration or renewal under the FCRA. The government has notified a number of amendments in the FCRA Rules, 2011, tightening the accountability for how NGOs and other associations in India receive and use foreign money.
