The Ministry of Home Affairs (MHA) has introduced stricter rules under the Foreign Contribution (Regulation) Act (FCRA), aiming to strengthen oversight, improve transparency and enhance accountability among organisations receiving foreign funds in India. The revised regulations, notified under the Foreign Contribution (Regulation) Amendment Rules, 2026, came into effect immediately after their publication in the Official Gazette.
One of the key changes is the expansion of the definition of “key functionary.” Earlier, the term primarily referred to office-bearers of organisations. Under the amended rules, it now includes directors of companies, partners in firms, trustees, kartas of Hindu Undivided Families (HUFs), members of governing bodies, and any individual responsible for managing or controlling an organisation’s affairs. The broader definition is intended to ensure greater accountability for those overseeing foreign-funded entities.
The revised framework also requires organisations registered under the FCRA to clearly specify the purpose for which foreign contributions will be used and identify the States or Union Territories where these activities will be carried out. New applicants must choose their intended activities from a predefined list provided in the amended rules while submitting their registration applications. Existing FCRA-registered organisations have been given one year to submit these details through the newly introduced Form FC-6F.
Another significant provision is the introduction of additional fees for organisations that seek approval to operate across multiple States or Union Territories or undertake multiple categories of activities. The government says the move is aimed at improving regulatory monitoring and ensuring that foreign funds are utilised only for approved purposes in designated locations.
The amended rules also provide greater clarity by classifying NGO activities into recognised categories such as social, educational, economic, cultural and religious programmes. Organisations receiving foreign contributions will need to align their activities with these approved categories while maintaining detailed disclosures regarding their operations, geographical coverage and organisational information.
According to the government, the changes are designed to make the regulatory framework more transparent and improve the traceability of foreign contributions. Enhanced reporting requirements are expected to strengthen oversight while helping authorities monitor the utilisation of overseas funding more effectively.
However, some civil society groups and sector experts have expressed concerns that the new compliance requirements could increase the administrative burden on non-governmental organisations, particularly smaller entities with limited resources. They argue that additional reporting obligations, activity-specific registrations and higher compliance costs may make it more challenging for genuine organisations to carry out development and humanitarian work.
The latest amendments are part of the government’s broader effort to tighten the regulatory framework governing foreign contributions while ensuring greater transparency in the functioning of organisations receiving overseas funds. As NGOs adapt to the revised rules, compliance with the new disclosure norms and operational requirements will become a key aspect of maintaining FCRA registration and continuing to receive foreign funding.
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