What is the FCRA Bill 2026?

FCRA stands for the Foreign Contribution (Regulation) Act. Under it, any NGO, trust or organisation can receive donations from abroad only if it holds an FCRA registration from the Ministry of Home Affairs. In 2026 a new amendment bill to this law was introduced and is being debated.

History of the law

The first FCRA law was made in 1976, during the Emergency. In 2010 a new FCRA replaced the old law. In 2020 stricter rules were added: the limit on administrative expenses was cut to 20 per cent, and foreign donations had to be received only in a designated account at SBI's New Delhi branch. Now, in 2026, a new amendment bill has been introduced.

Some figures

In 2024-25 about 16,200 organisations were active under FCRA, and they received ₹22,963 crore in foreign contributions. In the last 10 years the registrations of about 20,000 organisations have been cancelled.

What is new in the 2026 Bill?

If an organisation's registration is cancelled or not renewed, the assets created from foreign donations will pass to a "designated authority". If registration is not restored, these assets will permanently belong to the government, and if sold, the money will go to the Consolidated Fund of India. The religious character of places of worship will be preserved. The maximum jail term has been cut from 5 years to 1 year. State agencies will need the central government's approval before investigating. If not renewed on time, a registration will be treated as having ended automatically. There is provision for revision within 90 days and an appeal before the District Judge.

The government's case

The government says this will increase transparency and accountability in the use of foreign money, stop misuse of assets, reduce punishment for minor mistakes and give relief from multiple investigations in the same case.

Critics' concerns

Critics say it will affect the freedom of NGOs, charities and religious and educational institutions. Questions have been raised about hearings before assets are taken over, and it has been said that it gives the government more power. Some states have asked for wider consultation.

Current status

The bill was introduced in the Lok Sabha on 25 March 2026 and referred to a Joint Parliamentary Committee (JPC) on 12 August 2026. It is now under the committee's consideration and has not become law.

Sources: Ministry of Home Affairs / PIB factsheet, PRS Legislative Research (2026).