Ministry of Home Affairs (MHA), Government of India by notification dated 22.06.2026 has notified the Foreign Contribution (Regulation) Amendment Rules, 2026 applicable to all association registered under FCRA/seeking first time registration/renewable of existing registration or the association seeking prior permission. The key changes are summarized below:
1. Schedule Permissible Activities
As per the notification the activities of the association should be classified in following broad categories:
Accordingly, all the associations will need to align their activities and FCRA registrations with the prescribed categories and purposes. Any addition/deletion/modification of approved purposes after registration will require filing of Form FC-6F for approval from the Authorities.
2. Refinement of Religious Activities to Avoid Misuse
As per the notification the following activities can be undertaken for religious purposes:
However, conversion of religious activities will not be considered as religious. This amendment/clarification was much needed to stop the misuse of FC under the grab of “Donation”.
3. Unified Criteria of “Key Functionary”
A new definition of “Key Functionary” has been inserted, with the result directors, partners, trustees, karta of HUF, office bearers, governing body members, and other persons responsible for management and control of the association will be considered as “Key Functionary”.
4. Fresh Registration will base upon the following:
Confine to its Purpose
A major amendment requires every FCRA Registration to be linked to specific purpose(s) of utilization. Accordingly, applicants seeking fresh registration must select their purposes only from the newly prescribed Schedule to the Rules at the time of filing of application for registration itself.
Confine to its Geographical Location
Amendment requires every FCRA registration to be linked to specific State(s)/Union Territory(ies) where activities will be undertaken.
5. Revised Government Fees Structure
As per notification, the registration fees will very according to number of purposes and geographical area selected for its operation. It will be as under:
Threshold fee covers one purpose and one State/UT - ₹10,000/-.
Additional fee of per additional purpose - ₹300.
Additional fee of per additional State/UT - ₹300.
6. Restraint on Foreign Nationals as Key Functionaries
At present there was ambiguity about the foreign Nationals for becoming “Key Functionaries” of the entities holding FCRA certificate or seeking fresh/renewable registration. Now the rules clarify that organizations having foreign nationals (other than persons of Indian origin) as key functionaries will ordinarily not be eligible for FCRA registration or prior permission unless specifically permitted by the Central Government under prescribed circumstances.
7. Obligatory Utilization of FC - Renewal and its Continuation
It has been notified that for the purpose of renewable and continuation of registration the association must have undertaken “reasonable activities” and for this purpose a concept of “reasonable activity” has been introduced. Accordingly, an association will be considered active only if it has utilized at least ?10 lakh of foreign contribution during the preceding two financial years for its approved purposes.
8. Release of Subsequent Instalments under Prior Permission
Associations receiving foreign contribution under prior permission in instalments will now be required to:
9. Annual Return and Reporting Requirements
The notification has further enlarged reporting requirement in the Annual Return as being filed by the association. Henceforth annual activity report shall comprises in detail as under:
Activity reports;
10. Compliance Requirement for Existing FCRA Registrations Holders
Organizations already holding FCRA registration before the commencement of the Amendment Rules must, within one year, submit Form FC-6F to the Central Government specifying:
1. Review of current activities and to ensure they are in align with newly prescribed purpose categories.
2. Identify the States/UTs in which foreign contribution-funded activities are being undertaken.
3. Prepare for filing Form FC-6F within the prescribed one-year timeline.
4. Review governance structure to ensure compliance regarding key functionaries.
5. Strengthen project-wise and activity-wise documentation and reporting systems.
6. Assess utilization levels to ensure eligibility for future renewal of registration.
This article is intended solely for general information and awareness of organizations registered under the Foreign Contribution (Regulation) Act, 2010 (FCRA), and those proposing to seek registration, renewal, or prior permission under the Act. The contents are based on our understanding of the Foreign Contribution (Regulation) Amendment Rules, 2026 as notified by the Ministry of Home Affairs and are subject to further clarifications, notifications, circulars, FAQs, and judicial interpretations that may be issued from time to time. PKP, its partners, associates, and employees shall not be responsible for any loss, liability, or consequences arising from reliance on this article.
Organizations requiring assistance in understanding the impact of the Amendment Rules, 2026 or reviewing their existing FCRA compliance framework may contact our FCRA Advisory Team for a detailed assessment and implementation support.
"
Leave Your Comment