FCRA Bill is about transparency, not curbing civil society: India's US envoy

New Delhi: India's Ambassador to the US, Vinay Mohan Kwatra, has defended the proposed amendments to the Foreign Contribution (Regulation) Act (FCRA), asserting that the changes are aimed at improving transparency, governance, and oversight of foreign funds. In a series of posts on X on Monday, Kwatra issued a “Myth vs. Reality check” on the FCRA Amendment Bill, 2026, amid concerns raised by sections of civil society and a US lawmaker.

Kwatra said regulating foreign financial flows in public and political spaces is a sovereign measure driven by national security concerns and is a common feature in several democracies. “Truth: Regulation of foreign financial flows in public and political spaces is a sovereign step driven by national security concerns. It is an accepted feature of modern governance in many democracies around the world,” he said. He also pointed out that the US has similar laws, including the Foreign Agents Registration Act (FARA) and the Foreign Account Tax Compliance Act (FATCA).

Responding to claims that India was framing a new law to cut off foreign aid to civil society, Kwatra said the proposed legislation does not prohibit Indians from receiving foreign donations or seek to shut down law-abiding organisations. “The fact is that the law does not forbid Indians from receiving foreign donations or shut down law abiding civil society. Tens of thousands of associations are registered under FCRA and routinely receive foreign funds for health, education, disaster relief, research and humanitarian work,” he said.

Kwatra provided historical context, noting that the FCRA was first enacted in 1976, replaced by a new framework in 2010, and strengthened through amendments in 2016, 2018, and 2020. “The 2026 Bill and Rules are the next step in the same direction: more transparency, better governance, clearer rules,” he added.

Addressing allegations that the FCRA amendments specifically target a particular religion or community, Kwatra said, “Truth: Nothing could be farther from it. The Act applies uniformly to all organisations regardless of religion, community or ideology.” He added that faith-based welfare activities, including religious education, maintenance of places of worship, and charitable work by organisations of all faiths, would continue to be eligible for foreign funding.

On concerns that the FCRA has adversely affected NGOs and that the proposed amendments would further restrict their operations, Kwatra said foreign money inflows into India have been rising, not falling. “Foreign contributions to registered organisations grew from roughly $1.2 billion in 2010–11 to $2.67 billion in 2024–25,” he said. He noted that India has more than 3 million NGOs, while only 14,450 have FCRA registration, arguing that the overwhelming majority of civil society organisations fall outside the ambit of the Act. “FCRA does not stop anyone from accepting foreign charity, research grants or humanitarian aid. It asks three things — register, receive the money through laid down process, report what you did with it,” Kwatra said.

Regarding the provision that would allow the government to seize assets of NGOs, religious charities, places of worship, hospitals, and schools dependent on foreign donations, Kwatra said this is not a new provision. “When a registration is cancelled or surrendered, foreign contributions and the assets created from them already vest in a State Government authority. This has been in force since 2010. It is not new,” he explained. According to Kwatra, the 2026 Bill proposes to create a designated authority to safeguard such assets and also provides a mechanism for their return if an organisation restores its registration.