The Catholic Bishops’ Conference of India (CBCI) has written to Union Home Minister Amit Shah, urging him to withdraw the Foreign Contribution (Regulation) Amendment Bill, 2026. In a memorandum submitted on July 9, the CBCI stated that the proposed legislation contains 'several flaws' that 'adversely affects' organisations working in the social, educational, and health sectors.
Key Concerns Raised by CBCI
The CBCI highlighted that the amendment Bill imposes stringent restrictions on the use of foreign funds, including a ban on transferring funds to other entities and a requirement to open accounts only in a specified bank. The conference argued that these provisions would hamper the work of thousands of charitable and religious organisations across India.
According to the CBCI, the Bill's requirement that all foreign contributions be received only in the State Bank of India's New Delhi branch creates logistical challenges for organisations operating in remote areas. The memorandum also pointed out that the proposed ban on the transfer of funds to other organisations would disrupt collaborative projects and disaster relief efforts.
Impact on Social and Religious Organisations
The CBCI noted that many Catholic institutions, including schools, hospitals, and orphanages, rely on foreign donations to sustain their operations. The new rules could force these institutions to scale back their services, affecting millions of beneficiaries. 'The Bill, if passed, will severely impact the ability of organisations to serve the poor and marginalised,' the memorandum stated.
The conference also expressed concerns about the retrospective application of certain provisions, which could lead to legal complications for organisations that have already received foreign funds. The CBCI urged the government to engage in broader consultations with stakeholders before proceeding with the legislation.
Government's Stance
The FCRA amendment Bill was introduced in Parliament earlier this year, with the government arguing that it aims to increase transparency and prevent the misuse of foreign funds. Home Minister Amit Shah has defended the Bill, stating that it is necessary to ensure that foreign contributions are not used to influence India's internal affairs.
However, critics, including the CBCI, argue that the Bill is overly restrictive and could stifle legitimate charitable activities. The CBCI's memorandum is the latest in a series of appeals from civil society organisations urging the government to reconsider the amendments.
