India has enacted new Foreign Contribution (Regulation) Amendment Rules to tighten oversight of foreign-funded non-governmental organisations, with a pending bill proposing enhanced control measures including a new authority to manage NGO assets and expanded compliance requirements.
India has tightened the rules governing foreign-funded non-governmental organisations, with new Foreign Contribution (Regulation) Amendment Rules taking effect on 22 June 2026 while a separate amendment bill remains under parliamentary scrutiny. The government’s latest changes introduce a more exacting compliance regime for the roughly 14,500 organisations that hold FCRA registration, according to the Ministry of Home Affairs website and policy trackers monitoring the rules. (fcraonline.gov.in)
At the centre of the pending bill is a new “Designated Authority” that would oversee foreign-funded assets if an organisation’s registration is cancelled, surrendered or lapses. PRS India’s bill summary says such assets would be provisionally vested in the authority, with the bill also setting out a framework for supervision, management and disposal. The Economic Times reported that the proposal is designed to close a legal gap that has long complicated the treatment of NGO property built with foreign donations. (prsindia.org)
The rules now also demand a sharper demonstration of activity. According to reports on the June amendments, organisations seeking to keep their registration must show they have used at least ₹10 lakh in foreign funds over the previous two financial years, and they must specify both their purpose and the states or union territories in which they operate. The Centre for Advancement of Philanthropy said existing registrants have one year to file the new intimation form, a move aimed at ensuring that only active entities retain foreign funding licences. (capindia.in)
The compliance burden may now extend beyond the organisations themselves. Reports on the bill say the definition of “key functionary” has been broadened to cover people with substantial control over an entity’s affairs, increasing the risk of personal liability for breaches. That matters well beyond the non-profit sector, because many NGOs work with companies on corporate social responsibility, health and research projects, and those partnerships may now face more detailed due diligence. Parliament’s Digital Sansad site shows the bill was introduced in the Lok Sabha on 25 March 2026 and is still pending, with further review expected through the committee process. (sansad.in)
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