Key Changes:
a) To completely prohibit foreign donations to NGOs
b) To regulate the management and disposal of foreign-funded assets when FCRA registration ends
c) To transfer all foreign donations directly to state governments
d) To remove registration requirements for foreign contributions
Answer: b) The Bill creates a Designated Authority to supervise, manage and dispose of foreign contributions and assets when an organisation’s FCRA certificate is cancelled, surrendered, expires or is not renewed.
- An FCRA certificate will be treated as ceased if it expires, is not renewed or its renewal is rejected.
- Foreign funds and assets created wholly or partly from such funds will provisionally vest in a government-notified Designated Authority.
- Assets may become permanently vested if registration is not restored within the prescribed period.
- Permanently vested assets may be transferred to government bodies, sold or used for public purposes.
- Sale proceeds and unutilised foreign funds will be credited to the Consolidated Fund of India.
- The religious character of any place of worship taken over under the law must be protected.
- Organisations must provide the Authority access to accounts, electronic records, premises and properties.
- Appeals against orders of the Designated Authority may be filed before a District Judge within 90 days.
- The maximum imprisonment for certain violations is proposed to be reduced from five years to one year.
- Prior approval of the Central Government will be required before initiating an investigation under the Act.
- The Bill aims to create a clear legal system for managing foreign funds and assets when an organisation’s FCRA registration ends. It strengthens government oversight, prevents misuse or unauthorised transfer of foreign-funded assets and ensures that such assets are used for public purposes.
Question:
Q1.What is the main purpose of the Foreign Contribution (Regulation) Amendment Bill, 2026?a) To completely prohibit foreign donations to NGOs
b) To regulate the management and disposal of foreign-funded assets when FCRA registration ends
c) To transfer all foreign donations directly to state governments
d) To remove registration requirements for foreign contributions
Answer: b) The Bill creates a Designated Authority to supervise, manage and dispose of foreign contributions and assets when an organisation’s FCRA certificate is cancelled, surrendered, expires or is not renewed.
