Foreign Contribution (Regulation) Amendment Bill, 2026
The FCRA framework is a staple of GS II (governance, civil society) and GS III (internal security, money laundering). Any amendment signals a policy shift on foreign funding of NGOs, religious organisations, and political entities. This is also ethically significant under GS IV regarding transparency and accountability of organisations receiving foreign funds.
Key facts
- The Foreign Contribution (Regulation) Amendment Bill, 2026 aims to regulate acceptance and utilisation of foreign contributions.
- Key objective: prevent foreign inflows from adversely affecting national interest, public order, or national security.
- Original FCRA was enacted in 1976 and significantly amended in 2010 and 2020.
- The 2020 amendment had banned sub-granting of foreign funds, mandated use of SBI New Delhi Main Branch account, and capped administrative use at 20% of funds.
- FCRA is administered by the Ministry of Home Affairs (MHA).
- Entities violating FCRA can have their registration cancelled and face criminal prosecution.
The Bill seeks to regulate the acceptance and utilisation of foreign contributions to ensure that such inflows do not adversely affect national interest, public order, or national security.
Concepts to know
The principal law governing receipt and utilisation of foreign contributions by individuals, associations, and companies in India. It prohibits certain categories (politicians, judges, media) from receiving foreign funds and requires NGOs to register under FCRA and use a designated bank account.
A major amendment that prohibited organisations from transferring foreign funds to sub-grantees, mandated all recipients to open an account at SBI's New Delhi Main Branch, reduced the ceiling on administrative expenses from 50% to 20%, and strengthened Aadhaar-based identity verification for key office-bearers.
The nodal ministry responsible for administering FCRA in India; has powers to register, suspend, and cancel FCRA licenses of organizations receiving foreign funds.
In the FCRA context, national security refers to preventing foreign state or non-state actors from using financial contributions to destabilise Indian institutions, fund separatist movements, or influence elections and public policy.
Non-governmental organisations, trusts, and associations that operate in the public interest and often rely on foreign funding for humanitarian, developmental, or advocacy work; they are the primary entities regulated under FCRA.
Public order is a ground under Articles 19(2)-(6) and the Seventh Schedule (State List Entry 1) that permits the state to impose restrictions on fundamental rights. Courts distinguish 'public order' from mere 'law and order' — only disturbances affecting the community at large qualify.
Linked previous-year questions
The UPSC questions this story connects to.
Which of the following statements are correct in respect of a Money Bill in the Parliament? 1. Article 109 mentions special procedure in respect of Money Bills. 2. A Money Bill shall not be introduced in the Council of States. 3. The Rajya Sabha can either approve the Bill or suggest changes but cannot reject it. 4. Amendments to a Money Bill suggested by the Rajya Sabha have to be accepted by the Lok Sabha. Select the answer using the code given below: (a) 1 and 2 only (b) 2 and 3 only (c) 1, 2 and 3 (d) 1, 3 and 4
- a.1 and 2 only
- b.2 and 3 only
- c.1, 2 and 3 ✓
- d.1, 3 and 4
Polity · UPSC 2024As per Article 368 of the Constitution of India, the Parliament may amend any provision of the Constitution by way of: 1. Addition 2. Variation 3. Repeal Select the correct answer using the code given below: (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3
- a.1 and 2 only
- b.2 and 3 only
- c.1 and 3 only
- d.1, 2 and 3 ✓
Polity · UPSC 2024What will follow if a Money Bill is substantially amended by the Rajya Sabha? (a) The Lok Sabha may still proceed with the Bill, accepting or not accepting the recommendations of the Rajya Sabha (b) The Lok Sabha cannot consider the Bill further (c) The Lok Sabha may send the Bill to the Rajya Sabha for reconsideration (d) The President may call a joint sitting for passing the Bill
- a.The Lok Sabha may still proceed with the Bill, accepting or not accepting the recommendations of the Rajya Sabha ✓
- b.The Lok Sabha cannot consider the Bill further
- c.The Lok Sabha may send the Bill to the Rajya Sabha for reconsideration
- d.The President may call a joint sitting for passing the Bill
Polity · UPSC 2013Consider the following statements: 1. An amendment to the Constitution of India can be initiated by an introduction of a bill in the Lok Sabha only. 2. If such an amendment seeks to make changes in the federal character of the Constitution, the amendment also requires to be ratified by the legislature of all the States of India. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
- a.1 only
- b.2 only
- c.Both 1 and 2
- d.Neither 1 nor 2 ✓
Polity · UPSC 2013Match List-I with List-II and select the correct answer using the codes given below the lists: List–I (Amendments to the Constitution) List–II A. The Constitution (Sixty-ninth Amendment) Act, 1991 1. Establishment of state level Rent Tribunals B. The Constitution (Seventy-fifth Amendment) Act, 1994 2. No reservations for Scheduled Castes in Panchayats in Arunachal Pradesh C. The Constitution (Eightieth Amendment) Act, 2000 3. Constitution of Panchayats in Villages or at other local level D. The Constitution (Eighty-third Amendment) Act, 2000 4. Accepting the recommendations of the Tenth Finance Commission 5. According the status of National Capital Territory to Delhi (a) A-5, B-1, C-4, D-2 (b) A-1, B-5, C-3, D-4 (c) A-5, B-1, C-3, D-4 (d) A-1, B-5, C-4, D-2
- a.A-5, B-1, C-4, D-2 ✓
- b.A-1, B-5, C-3, D-4
- c.A-5, B-1, C-3, D-4
- d.A-1, B-5, C-4, D-2
Polity · UPSC 2001Which of the following Constitutional Amendments are related to raising the number of Members of Lok Sabha to be elected from the States? (a) 6th and 22nd (b) 13th and 38th (c) 7th and 31st (d) 11th and 42nd
- a.6th and 22nd
- b.13th and 38th
- c.7th and 31st ✓
- d.11th and 42nd
Polity · UPSC 2003
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