New FCRA Rules Mandate Purpose and Location Disclosure for NGOs
The Indian Ministry of Home Affairs (MHA) has notified the Foreign Contribution (Regulation) Amendment Rules, 2026, introducing significant changes to the registration, reporting, and utilisation framework for associations receiving foreign contributions under the Foreign Contribution (Regulation) Act (FCRA), 2010. The amendments, effective from June 22, 2026, modify various provisions of the Foreign Contribution (Regulation) Rules, 2011.
A key change is the formal definition of the term “Chief Executive,” which now covers directors of companies, partners of firms, trustees of trusts, office-bearers of societies, trade unions, and any other person responsible for the management or affairs of an organisation. Corresponding amendments replace references to executive committee or governing body members with “Chief Executive” in several provisions.
The amended rules require FCRA registration certificates to specify the purpose or purposes and the state or Union Territory for which registration has been granted. Every organisation applying for registration must now indicate the purpose and the state or Union Territory where it proposes to undertake activities. Existing FCRA-registered associations have been directed to furnish these details to the Central Government within one year from the commencement of the amended rules if they wish to continue their registration.
Schedule of Permissible Purposes and Additional Fees Introduced
To facilitate the new system, the government has inserted a detailed schedule listing permissible purposes for registration. The schedule categorises activities under five broad sectors: religious, cultural, economic, educational, and social. Associations seeking registration must select their activities from the categories specified in the schedule.
The notification also introduces additional fees for organisations seeking registration for multiple purposes or operations in multiple states or Union Territories. An additional fee of Rs 300 will be payable for each extra purpose and for each additional state or Union Territory included in the application.
Another significant provision relates to organisations having foreign nationals in key positions. The rules clarify that an association having foreign citizens as its chief office-bearers will ordinarily not be considered eligible for registration or prior permission under the Act. However, the Central Government may, by order, specify circumstances in which such organisations may be considered for registration or prior permission.
Utilisation and Instalment Release Conditions Tightened
The amended rules further clarify that foreign contributions received under the Act can be utilised only for activities undertaken in India and only for the purposes for which such contributions have been received. In another change, associations receiving foreign contributions in instalments will be required to apply in Form FC-3BB for release of a second or subsequent instalment. Such instalments will be released only after utilisation of 75 per cent of the previous instalment and following verification of such utilisation through field inspection.
The rules also introduce a new provision relating to “reasonable activity.” For the purposes of cancellation of registration under Section 14 and renewal under Section 16 of the Act, an association will be deemed to have undertaken reasonable activity in its chosen field if it has utilised at least Rs 10 lakh of foreign contribution for approved purposes during the previous two financial years.
Annual Compliance and Scope Modification Procedures Updated
Annual compliance requirements have also been modified. Associations filing annual returns will now be required to submit a detailed activity report along with their income and expenditure statements. At the same time, certain existing sub-rules relating to annual reporting have been omitted.
The amendments additionally create a mechanism for registered associations to seek changes in the scope of their registration. Organisations intending to add or remove approved purposes or states and Union Territories from their registration certificate will have to apply to the Central Government in Form FC-6F along with the prescribed fee and a resolution of the governing body. The application may be approved or rejected after such inquiry as the government considers necessary.
The amendments have come into effect from June 22, 2026.
