Question 1

Foreign funding to Indian NGOs is governed entirely by the Ministry of Finance.

Accepted Answer

The FCRA is administered by the Ministry of Home Affairs (MHA) due to its deep implications for internal security and public order.

Question 2

The 2026 Bill increases the jail term for FCRA violations to act as a stronger deterrent against rogue NGOs.

Accepted Answer

The 2026 Bill actually reduces the maximum imprisonment from 5 years to 1 year, shifting the punitive focus from jailing individuals to confiscating the organization's assets.

Question 3

Consider the following statements regarding the Foreign Contribution (Regulation) Amendment Bill, 2026:
1. It introduces a 'Designated Authority' to provisionally vest assets only when an NGO's registration is explicitly cancelled by the MHA, but not when it merely expires.
2. It requires prior approval of the Central Government before any law enforcement agency can initiate an investigation into an FCRA-related offence.
3. It increases the maximum imprisonment for contravening the Act from one year to five years to strengthen deterrence.
How many of the above statements are correct?

Accepted Answer

(a) Only one — Statement 1 is incorrect because assets vest in the Designated Authority upon cancellation, surrender, OR cessation (expiry) of the registration. Statement 2 is correct; Section 43 is amended to mandate prior Central Government approval for investigations. Statement 3 is incorrect; the 2026 Bill actually reduces the maximum imprisonment from 5 years to 1 year.

Question 4

Match the following legal provisions/cases related to FCRA with their corresponding features:
List I
A. Section 16A (Proposed in 2026)
B. Noel Harper v. Union of India
C. Section 13 (Amended in 2026)
D. FCRA 2020 Amendment

List II
1. Upheld the constitutionality of strict foreign funding regulations
2. Mandatory opening of a designated account in SBI, New Delhi
3. Provisional vesting of unutilized foreign assets in a Designated Authority
4. Freeze on alienating assets during the suspension of a certificate

Select the correct code:

Accepted Answer

(a) A-3, B-1, C-4, D-2 — Section 16A (2026 Bill) deals with the provisional vesting of assets (A-3). Noel Harper v. Union of India is the landmark Supreme Court judgement upholding the 2020 FCRA amendments (B-1). The 2026 amendment to Section 13 prevents NGOs from alienating assets during suspension without prior approval (C-4). The 2020 Amendment mandated receiving funds only in the SBI New Delhi main branch (D-2).

Question 5

Assertion (A): Under the FCRA Amendment Bill 2026, the prohibition on receiving foreign contributions has been expanded from associations or companies to any 'person' engaged in broadcasting news or current affairs.
Reason (R): The government aims to prevent foreign interference in domestic politics and public discourse through individuals who may bypass traditional corporate structures.
Select the correct answer:

Accepted Answer

(a) Both A and R are true and R is the correct explanation of A — The Assertion is true as the 2026 Bill specifically broadens the scope of the news media ban to include any 'person' (individuals), not just associations or companies. The Reason is a logically sound explanation for this expansion, as individuals (like independent journalists or content creators) could previously receive funds and influence public discourse, bypassing the older restrictions meant for media houses.

FCRA Amendment Bill, 2026 Introduced

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