Foreign Contribution (Regulation) Amendment (FCRA) Bill, 2026
The FCRA Bill, introduced in the Lok Sabha on March 25, 2026, represents a significant shift in regulatory measures concerning NGOs and related entities.
Key Objectives
- Transparency and National Security: The bill is presented as a means to enhance transparency and strengthen national security.
- Executive Power: It notably increases executive control over NGOs, charitable trusts, and educational and religious institutions.
Existing FCRA Regime
The current FCRA framework is known for its stringent control over civil society, being one of the toughest in any democracy.
Amendments and Restrictions
- 2020 Amendments: Introduced several restrictive measures:
- All foreign contributions are required to flow through a single bank branch (State Bank of India) in New Delhi.
- Administrative expenditure limits were reduced from 50% to 20%.
- Banned sub-granting to smaller organizations.
- Expanded suspension powers.
- Impact on NGOs: These amendments have severely affected thousands of NGOs, particularly smaller, faith-based, and charitable organizations working with marginalized communities.
