Legal Advisory

Ministry of Home Affairs notifies notified Foreign Contribution (Regulation) Amendment Rules, 2026 and launches of FCRA 2.0 portal

The Ministry of Home Affairs, through its Gazette notification dated 22.06.2026, notified Foreign Contribution (Regulation) Amendment Rules, 2026 (‘Amended Rules’) thereby amending the Foreign Contribution (Regulation) Rules 2011 (‘FCRA Rules’). The Key changes are enlisted as below:

Specification of Purpose and the operating area: Prior to the Amendment, FCRA Rules operated on a broad, programme based classification (e., Social, cultural, educational, economical or religious) without specific geographical caps.
However, through insertion of Rule 9(1B)(a) and (b), it is now a mandate in every Application for registration to mention the purpose for which registration is being sought. Further, it must be chosen only from such list of purposes as specified in the Schedule of the notified rules. Along with it, the Application must specify the States or union Territories in which the association propose to undertake the activity. Furthermore, it has been clarified that the allocated fund cannot be utilised for proselytization activities.
Timeline for compliances: Existing registrations must file Form FC-6F specifying the purposes and States/UTs by 21^st June, 2027 to the Central Government for which it seeks to retain its registration.
Fee Structure: Prior to 2026 amendment, FCRA charge the fee for the application of registration in accordance with Rule 9(4) of the Act. However, through the insertion of Proviso in Rule 9(4)(b), the fee specified in Rule 9(4), will be applicable to the extent of the registration to operate in one State or Union territory and to conduct activities for one purpose only. Therefore, if the application proposes to undertake the activity in more than one state or union territory or where it enlist more than one purposes, then an additional fee of INR 300 for each added State/Union Territory and Purposes will be charged.
Key Functionaries: The FCRA Rules inserted Rule 2(1)(ca) which defines the term ‘Key Functionary’— covering directors of companies, partners of firms, trustees, Kartas of Hindu undivided families, office-bearers or members of governing or managing bodies of societies, trusts, and trade unions, and any other person exercising control over the management or affairs of an association.
Registration of foreign nationals: Prior to Amended Rules, there was no explanation regarding grant of registration to the key functionaries in case of foreign nationals. However, the Amended Rules have specified that an association having foreign nationals, other than those of Indian origin, as its key functionaries shall ordinarily not be considered eligible for grant of registration or prior permission under the Act. Nonetheless, the Central Government by order specify such cases which may provide exemption to such association and the contribution so received will be utilised only for activities carried within India territory.
Restriction on Use of Foreign Funds Outside India: Through the Explanation 2 inserted after Rule 9(5), it has been clarified that Foreign contributions must be used only within India for declared purposes.
Change of Operational Scope of Registration: Prior to Amended Rules, the FCRA rules prescribe condition about change in designated bank account, objective, aim and details of key member of association but no provision have been prescribed for change in scope of registration. However, the Amended Rules have inserted Rule 17B through which Associations may add/delete purposes or States/UTs via Form FC-6F with governing body resolution.
FC utilisation and bare license holding: Prior to Amended Rules, FCRA does not prescribe any condition regarding a minimum utilisation of funds for subsequent license renewal. However, through the insertion of Rule 14A a minimum cap on fund utilisation and specified that, in order for an association to continue its operation and prevent subsequent cancellation, the association have to utilise an amount of INR 10 lakh from its foreign contribution, in the last two financial years.
Restriction on fund utilisation: Prior to Amended Rules, FCRA does not prescribe any rules regarding release of subsequent instalment in lieu of fund utilisation. However, through the insertion of Proviso to Rule 9A, it has been specified that, if any Association through an application as per Form FC-3BB seeks release of the second or any subsequent instalment then the second or any subsequent instalment shall be released only after utilisation of 75% of the foreign contribution received under the previous instalment utilisation.
The Amended Rules have further clarified the Contents of new Form FC-3BB which requires:
1. CA certificate;
2. Bank statements;
3. Activity photographs; and
4. Declaration of violations/changes.
Mandatory Activity Disclosure in Annual Returns : In order to enhance further accountability, the Amended Rules have incorporated the following additional conditions with respect to filing of annual return under Form FC-4:
1. Associations must now disclose their official website and social media accounts;
2. The donor table’s “Institutional / Individual” column is widened to “Institutional / Individual / Donor Advised Funds / Other intermediary remittance vehicles”, and a new sub-clause (aa) requires associations to name the ultimate donor behind any DAF or intermediary with the ultimate donor’s name, address, email, and amount.
3. A detailed activity report shall be attached along with a table mapping each project / activity and location to amounts utilised, split across project / activity spend, fresh assets, and administrative expenditure.
4. A new Serial 8A requires disclosure of any publications brought out by the association or its key functionaries during the year (date, nature, title, where published, brief description), with an express note that under Section 3(1)(g) the association shall not engage in production or broadcast of news or current-affairs content.
5. Auditor certification must now carry a UDIN (Unique Document Identification Number), and a new clause requires the UDIN of the separate audited financial statements maintained for foreign Contribution as received by the Association.
Insertion of “Schedule” specifying the Permitted Purposes for Registration : The statutory Schedule inserted by the Amended Rules lists specific permitted activities across five categories. The categories are:

- Religious
- Cultural
- Economic
- Educational
- Social

Launch of FCRA 2.0 Portal

On 30 June 2026, Union Home Minister officially launched the new FCRA 2.0 Portal. This is a fully online platform that digitises all major FCRA processes (registration, renewal, annual returns, etc.) and incorporates the key 2026 amendment provisions. The portal (hosted on the government’s “MeghRaj” cloud) features Aadhaar-based login, e-signatures, OCR document analysis, an integrated dashboard and links to PAN, NGO Darpan and other databases. According to the Government, it will “reduce paperwork, save time” and speed up application processing, while strengthening real-time monitoring of foreign donations.