Published: 28 March 2026PRS Legislative Research / Lok SabhaGovernance
Foreign Contribution (Regulation) Amendment Bill 2026 Introduced in Lok Sabha; Key Provisions on NGO Asset Management
The Foreign Contribution (Regulation) Amendment Bill, 2026 was introduced in the Lok Sabha on March 25, 2026, seeking to amend the Foreign Contribution (Regulation) Act (FCRA), 2010. The Bill is significant as it proposes substantial changes to how the government oversees foreign funding received by non-governmental organisations (NGOs), civil society groups, and other associations in India.
The most consequential provision of the Bill is the introduction of a "designated authority" empowered by the central government to take over, manage, or dispose of assets created from foreign contributions by organisations whose FCRA registration has been suspended, cancelled, or not renewed. This provision grants the government significant control over NGO assets even after registration lapses, a move that critics describe as shifting from regulation to expropriation.
Other key changes include: reducing the maximum imprisonment term for FCRA violations from five years to one year; requiring prior approval of the central government before any investigation can be initiated against a person or organisation for offences under the Act; and increased scrutiny of foreign funding utilisation. The Bill was deferred on April 1, 2026, with Parliamentary Affairs Minister Kiren Rijiju citing legislative priorities.
FCRA 2010 governs the acceptance and utilisation of foreign contributions by individuals, associations, and companies in India. The 2010 Act replaced the original Foreign Contribution (Regulation) Act, 1976, and has been amended multiple times, including in 2020 to tighten regulations on sub-granting and bank account requirements. The 2026 amendment, if passed, would represent a significant centralisation of oversight over civil society organisations that receive foreign funding.
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Q: What are the key provisions of the FCRA Amendment Bill 2026, and what concerns does it raise for civil society?
Answer (50 words):
Introduced in Lok Sabha on March 25, 2026, the Bill creates a designated authority to manage assets of organizations whose FCRA registration is cancelled. It reduces maximum imprisonment from five years to one year and requires prior central government approval before investigations. Minister Kiren Rijiju deferred the Bill on April 1.
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Practice MCQ from this story
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Linked questionMedium
To what has the FCRA Amendment Bill 2026 proposed to reduce the maximum imprisonment term for FCRA violations?
Explanation · Correct answer CThe Bill reduces the maximum imprisonment term for FCRA violations from five years to one year, while requiring prior Central Government approval for investigations.
Frequently asked questions
What is FCRA 2010?
The Foreign Contribution (Regulation) Act, 2010 regulates acceptance and utilisation of foreign contributions by individuals, associations, and companies in India. It replaced the 1976 FCRA.
What is the main new provision of FCRA Amendment Bill 2026?
A designated authority appointed by the central government can take over, manage, or dispose of assets created from foreign contributions by organisations whose FCRA registration is cancelled or suspended.
What changes are proposed for penalties?
The maximum imprisonment for FCRA violations is reduced from 5 years to 1 year under the Amendment Bill.
What is the current status of the Bill?
The Bill was introduced on March 25, 2026 and deferred on April 1, 2026 by the Parliamentary Affairs Minister; it has not been passed yet.
Why is the FCRA Amendment Bill 2026 controversial?
Critics argue it shifts from regulation to expropriation by allowing the government to seize and dispose of NGO assets even after registration lapses, and centralises investigative oversight.
