The Union government has approved key amendments to the Foreign Contribution (Regulation) Act (FCRA), 2010, aiming to strengthen oversight of foreign funds flowing into India. The proposed bill, cleared by the Union Cabinet, introduces stricter timelines for utilisation of funds and a new mechanism to regulate assets created through foreign contributions.
India currently has around 16,000 FCRA-registered associations, receiving nearly ₹22,000 crore annually from foreign sources. These funds support a wide range of activities, including social work, education, and development projects. However, concerns over misuse and lack of transparency have prompted the government to tighten regulations.
A major provision in the amendment mandates that organisations must utilise foreign contributions within a specified time frame. This is expected to ensure better financial discipline and prevent funds from remaining unused or being diverted from their intended purpose.
Another significant change is the introduction of a statutory framework allowing authorities to take over and manage assets created using foreign funds if an organisation’s FCRA licence is cancelled, suspended, surrendered, or lapses. This aims to address existing gaps where such assets could become unregulated after an organisation exits the FCRA system.
The bill also proposes a time-bound process for handling these assets, ensuring clarity and preventing misuse. According to the government, these measures are designed to safeguard national and public interest by enhancing accountability in the use of foreign funds.
The amendment is expected to be tabled in Parliament in the upcoming session. If passed, it will mark a major shift in how foreign contributions are monitored and managed in India, increasing compliance requirements for organisations while aiming to ensure responsible use of international funding.