1.FCRA NGO Compliance Rules (FCRA Amendments)
What & Where
Foreign Contribution (Regulation) Act, 1976 – central law regulating acceptance & use of overseas funds in India
Applies to individuals, associations, NGOs nationwide; administered by Ministry of Home Affairs
Objective: guard national interest, ensure transparency, prevent political or religious misuse of foreign money
Quick Facts for MCQs
Legal & Policy
- Amendment 2010 strengthened reporting; Amendment 2020 tightened utilisation & oversight
- MHA empowered to inspect, suspend, cancel registrations for contraventions
- Warning Jan 2025 reiterates penalties for unlicensed foreign-fund usage
Compliance Requirements
- Aadhaar-based verification ensures traceable governance of NGOs
- Only one SBI-Delhi account to receive foreign inflows; other accounts limited to utilisation
- Renewal filing six months early prevents automatic lapse of FCRA status
Funding Restrictions
- Administrative-spend capped at 20 %; balance for stated charitable objectives
- No onward transfer of foreign money to other NGOs or entities
- Bar extends to candidates, journalists, media houses, judges, govt servants, political bodies
Security Dimension
- Applicants must not engage in religious conversion, fictitious entities, seditious or communal activities
- Act designed to curb foreign influence over domestic political or social processes
Key Data Points
| Feature | Data-Point |
|---|---|
| Enactment year | 1976 (Emergency period) |
| Latest major amendment | 2020 |
| Admin ministry | MHA, GoI |
| Registration validity | 5 years |
| Renewal deadline | Apply ≥6 months before expiry |
| Max suspension period | 360 days |
| Admin-expense ceiling | 20 % of foreign funds (pre-2020: 50 %) |
| Sub-granting | Completely prohibited post-2020 |
| Mandatory ID | Aadhaar for all key functionaries |
| Designated account | Single FCRA a/c at SBI, New Delhi |
| Public servants funding | Absolutely barred |
| Typical penalty trigger | Use of foreign funds without valid licence |
Related UPSC Prelims PYQs
Which one of the following statements is correct with reference to FEMA in India?











