FCRA Rules Tightened: NGOs Must Specify Purpose, Bar Proselytisation

The Union Home Ministry has amended the Foreign Contribution Regulation Act (FCRA) rules, imposing stricter conditions on NGOs receiving foreign funds. The amendments, notified in a gazette on Monday, require NGOs to select their purpose and area of operation from a predefined list, explicitly excluding proselytisation from several eligible categories.

Under the new rules, applications for registration must specify the purpose chosen from a schedule covering religious, cultural, economic, educational, and social activities. For religious purposes, activities such as construction of places of worship, religious education, and promotion of devotional music are allowed, but proselytisation is barred in categories like religious education, documentation of faith traditions, and preservation of indigenous beliefs.

The amendments also restrict foreign nationals, except those of Indian origin, from serving as key functionaries of associations seeking FCRA registration. The government may, however, allow such cases through a specific order. The definition of 'key functionary' has been expanded to include directors, partners, trustees, and others with management control.

NGOs must now disclose their specific purposes and states of operation within one year if registered before 2026. A fee of Rs 300 per additional state or purpose has been introduced. To prevent inactive NGOs from holding licences, a minimum spending of Rs 10 lakh from foreign contributions over the last two financial years is required for renewal.

For NGOs receiving funds under 'Prior Permission', subsequent instalments will be released only after 75% of the previous instalment is utilised, verified through field inquiries. The government aims to enhance accountability in foreign fund utilisation.