Act 2010
Foreign Contribution (Regulation) Act, 2010 (FCRA)
Effective: 1 May 2011
Plain-English summary
The Foreign Contribution (Regulation) Act, 2010 holds full validity as India’s topmost statutory instrument dealing with the acceptance and management of foreign contributions in civil society organizations. Despite being highly regulated with inflexible rules like the compulsory route for all international funds through one branch of the SBI at New Delhi, a 20% ceiling on administration costs, and an absolute prohibition on cross-transfers between NGOs, the Act is currently witnessing major structural changes. The revised rules on the Foreign Contribution (Regulation) Act, 2026 have already come into effect and regulate the use of geography-based funding channels and a ₹10 lakh floor requirement for renewal purposes. On the other hand, the comprehensive FCRA Amendment Bill, 2026 is currently pending before the Joint Parliamentary Committee to establish a new Designated Authority for asset management in case of expiry or cessation of the five-year license period.
Who it applies to
NGOs / NPOs
Topics
AML / CFT / Sanctions
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