The Foreign Contribution (Regulation) Act, 2010 (FCRA) is an Act of Parliament that regulates the acceptance and utilisation of foreign contributions and foreign hospitality by individuals, associations, and companies in India. Its primary objective is to ensure that foreign funding does not adversely affect India's sovereignty, security, public interest, or democratic processes. The original FCRA was enacted in 1976 during the Emergency, driven by concerns that foreign powers were interfering in India's affairs by channeling funds through independent organisations. The FCRA, 2010, which repealed the 1976 Act, received Presidential assent on September 26, 2010, and came into force on May 1, 2011.
The Act is administered by the Ministry of Home Affairs (MHA) and mandates that any person with a definite cultural, economic, educational, religious, or social programme must obtain a certificate of registration under Section 11 to accept foreign contributions. Key mechanisms include the requirement for registered entities to receive foreign funds through a designated bank account and file mandatory annual returns. The FCRA is distinct from the Foreign Exchange Management Act (FEMA), as FCRA regulates non-commercial foreign contributions like donations and grants, while FEMA governs commercial transactions.
The Foreign Contribution (Regulation) Amendment Act, 2020, introduced significant changes. It made it mandatory for all foreign contributions to be received in a designated "FCRA account" at a branch of the State Bank of India in New Delhi. The amendment also prohibited the transfer of foreign contributions to any other person, even if that person was registered under FCRA. Furthermore, the limit on using foreign contribution for administrative expenses was reduced from 50% to 20% of the contribution received in a financial year. The 2020 amendment also added public servants to the list of persons prohibited from receiving foreign contributions.