FCRA Bill Sent to JPC; It Seeks Tougher Compliance From Foreign-Funded NGOs
According to a report, as of July 2023, India had 16,301 NGOs with valid FCRA licences, while more than 6,600 licences had been cancelled over the preceding five years for violations of the law.
Anantapur:The Foreign Contribution (Regulation) Amendment Bill, 2026, has been referred to a 31-member Joint Parliamentary Committee (JPC), which has been asked to submit its report by the last day of the first week of the Winter Session of Parliament.
The amendments suggested in the bill are expected to tighten compliance requirements for organisations receiving foreign funds.
The bill assumes significance amid a decline in the number of organisations with active FCRA status. The Ministry of Home Affairs’ FCRA Online dashboard currently shows around 14,400 active associations, while more than 22,000 are listed as cancelled, and over 15,000 as expired. The figures are dynamic and change as applications, renewals, and status updates are processed.
According to a report, as of July 2023, India had 16,301 NGOs with valid FCRA licences, while more than 6,600 licences had been cancelled over the preceding five years for violations of the law.
The proposed amendments in the 2026 bill are expected to have an impact on NGOs working on poverty alleviation, drought relief, and rural development, particularly in Rayalaseema and tribal areas of Andhra Pradesh. Several NGOs have faced difficulties in obtaining renewal of their FCRA registrations, while some have faced allegations of misuse of funds.
The Rural Development Trust of Anantapur faced a renewal issue a few months ago. It subsequently obtained renewal after a recommendation from the state government. An NGO from Anantapur district facing similar allegations is also seeking renewal in 2027.
FCRA regulations have been amended several times since P. Chidambaram had been the union Finance minister, while enforcement has been tightened over the past year across the country, analyst and expert K. Narayana of Anantapur said.
The proposed amendments in the 2026 bill would curb the misuse of funds by NGOs receiving large foreign contributions in the name of poverty alleviation.
Hundreds of NGOs are registered in Rayalaseema, mainly in Anantapur, Kadapa, and Kurnool. They are working in areas including education, financial assistance to farmers, and improving greenery in forests.
The government has also tightened the regulatory framework through the Foreign Contribution (Regulation) Amendment Rules, 2026, notified on June 22. The new rules introduce a formal definition of “key functionary,” make registration purpose- and geography-specific, prescribe categories of permissible activities, and enhance activity-level and donor-level reporting requirements.
Under the new system, FCRA registration certificates will specify the purpose or purposes and the state or Union Territory for which registration is granted. Existing associations have been given one year to furnish the required information.
For NGOs working in poverty alleviation, education, healthcare, rural development, and community welfare, the changes could increase compliance requirements. Organisations dependent on overseas donations will face greater scrutiny of their activities, accounts, donors, key functionaries, and geographical operations.
Experts said genuine NGOs could face higher compliance costs, while organisations accused of diverting funds or operating outside their approved objectives could face greater regulatory risk.
