Foreign Contribution (Regulation) Act, 2010 and its 2026 changes
The Foreign Contribution (Regulation) Act, 2010, administered by the Ministry of Home Affairs, decides who in India may accept money or goods from foreign sources. Funds must enter one State Bank of India account in New Delhi, and political parties, judges and legislators may not take them. Rules amended in June 2026 are in force; an Amendment Bill is pending.
Syllabus: GS2 · Government Policies; GS2 · NGOs, SHGs & Civil Society; GS3 · External Threats to Security
In short
The Foreign Contribution (Regulation) Act, 2010, run by the Ministry of Home Affairs, decides who may accept foreign contribution; its tension is transparency against freedom of association in Article 19(1)(c).
FCRA's disclosure trail is defensible; its rules should still be proportionate, time-bound and reasoned, so oversight does not choke civil society.
Why it matters
A village health charity funded by a European foundation must now name each State it works in and each activity it runs, and show at least ₹10 lakh of foreign funds spent over two years to renew its registration. Small or seasonal groups may struggle to meet that bar, while larger organisations get clearer rules. Donors gain a traceable trail from source to spending; beneficiaries lose services when a registration lapses and programmes stop. The larger question is balance: the State's interest in knowing who funds influence over public life, set against the freedom of association in Article 19(1)(c) and the work of civil society in health, education and relief.
Prelims pointers
- Section 3, FCRA 2010: election candidates, legislators, judges, government and public servants, political parties and their office-bearers, and specified news-media persons cannot accept foreign contribution.
- Foreign source excludes the United Nations and its specialised agencies, the World Bank and the IMF, so their grants are not foreign contribution under the Act.
- Section 6: legislators, judges, political-party office-bearers and government servants need the Centre's prior permission to accept foreign hospitality abroad.
- Section 7, as amended in 2020: foreign contribution cannot be transferred to any other person or association.
- Section 17: foreign contribution is first received in the FCRA account at SBI's New Delhi Main Branch; other bank accounts may be used for spending it.
- Section 15: on cancellation, foreign contribution and assets created from it vest in a prescribed authority, the State Government or Union Territory Administration.
- Noel Harper v. Union of India (2022): the Supreme Court upheld the 2020 amendments, including the single SBI account and the ban on transfers.
- Article 19(1)(c) protects the right to form associations; Article 19(4) permits reasonable restrictions for sovereignty and integrity of India, public order or morality.
Practise a UPSC-style question
With reference to the Foreign Contribution (Regulation) Act, 2010, consider the following statements:
1. A candidate for election may not accept foreign contribution.
2. A judge may not accept foreign contribution.
3. A political party may not accept foreign contribution.
4. A correspondent of a registered newspaper may not accept foreign contribution.
How many of the above statements are correct?
- (a) Only one
- (b) Only two
- (c) Only three
- (d) All four
Show the answer
Answer: (d) All four
1 is correct: Section 3 names candidates for election. 2 is correct: judges are on the Section 3 list. 3 is correct: political parties and their office-bearers may not accept foreign contribution. 4 is correct: correspondents, columnists, editors, owners, printers and publishers of registered newspapers are covered. So all four statements are correct.
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