FCRA Amendment Rules, 2026 – Key Amendments & Compliance Requirements

Summary: The Ministry of Home Affairs has notified the Foreign Contribution (Regulation) Amendment Rules, 2026, effective from 22 June 2026, introducing changes to FCRA registration, approved purposes and geographical areas, existing-entity compliance, prior-permission instalments, foreign contribution utilisation, key functionaries, foreign nationals, minimum activity requirements and annual reporting. The amendments introduce Form FC-6F for existing associations and changes in area or purpose, Form FC-3BB for subsequent instalments, a Schedule of 105 prescribed purposes, enhanced Form FC-4 disclosures and a ₹10 lakh utilisation threshold for “reasonable activity”. A related compounding notification also prescribes penalties for specified misuse of foreign contribution, including use for unapproved purposes or States/Union territories.

Foreign Contribution (Regulation) Amendment Rules, 2026: Key Changes and Compliance Requirements

The Ministry of Home Affairs, Government of India, has notified the Foreign Contribution (Regulation) Amendment Rules, 2026, further amending the Foreign Contribution (Regulation) Rules, 2011. The Amendment Rules have come into force w.e.f. 22 June 2026 and introduce several important changes affecting persons and associations covered under the Foreign Contribution (Regulation) Act, 2010 (“FCRA”), including existing registered associations, prior permission holders and applicants seeking registration or prior permission.

The key amendments and corresponding compliance requirements are discussed below:

1. Registration Certificate to Specify Purpose(s) and States/Union Territories (Rule 9)

A new Rule 9(1B) has been inserted providing that the certificate of registration shall specify the purpose or purposes and the States or Union territories for which registration is granted.Correspondingly, every application for registration is required to specify the purpose or purposes for which registration is sought, chosen only from the list specified in the Schedule appended to the Rules, and the States or Union territories in which the association proposes to undertake the activities.

The Amendment Rules have also inserted a new Schedule titled “Purposes for Registration”, containing 105 prescribed Purposes/Activities grouped under the five broad heads of Religious (16), Cultural (18), Economic (19), Educational (22) and Social (30) purposes.

The prescribed Purposes/Activities are specific in their scope and, in certain cases, are also subject to express qualifications or exclusions. For instance, certain Purposes/Activities under the Religious purpose expressly exclude proselytisation, while certain other entries contain specific limitations concerning political or ideological content. The exact wording and scope of the relevant Purpose/Activity therefore assumes significance while specifying the purpose or purposes for which registration is sought.

The amendment also revises the registration fee under Rule 9(4). The prescribed fee covers registration to operate in one State or Union territory and to conduct activities for one purpose. An additional fee of ₹300 per State or Union territory and ₹300 per purpose, as applicable, is payable where the application covers more than one State/Union territory or purpose.

2. One-time Compliance by Existing FCRA-registered Associations (Form FC-6F)

Under Rule 9(1B)(c), every association registered before the commencement of the Foreign Contribution (Regulation) Amendment Rules, 2026 is required to submit an intimation to the Central Government in Form FC-6F, specifying the purpose or purposes and the States or Union territories for which it seeks to retain its registration, within one year of such commencement (by 21 June 2027).

Existing FCRA-registered associations should therefore identify the applicable purpose or purposes from the prescribed Schedule and the States or Union territories for which they seek to retain registration, and file Form FC-6F within the prescribed timeline.

3. Change in Purpose or Geographical Area (Rule 17B/Form FC-6F)

A new Rule 17B has been inserted providing a mechanism for an association registered under the FCRA which intends to change its area of operation by including or deleting any purpose or any State or Union territory specified in its certificate of registration. Such association is required to apply in Form FC-6F, accompanied by a resolution of the governing body approving the proposed change and the prescribed fee.

The Central Government may, after such inquiry as it deems fit, approve or reject the application.

4. Prior Permission – Release of Second or Subsequent Instalments (Rule 9A/Form FC-3BB)

Under Rule 9A, where the value of foreign contribution at the time of final disposal of an application for prior permission exceeds ₹1 crore, the Central Government may permit receipt of such foreign contribution in instalments. For release of the second or any subsequent instalment, the continuing requirements include utilisation of seventy-five per cent of the foreign contribution received in the previous instalment and field inquiry of such utilisation.

The 2026 amendment prescribes Form FC-3BB for an association seeking release of the second or any subsequent instalment under the above framework. The Form requires, inter alia, details of the prior permission, foreign contribution received and utilised, utilisation of the previous instalment and assets created, along with the prescribed supporting documents, including the utilisation statement duly certified by a Chartered Accountant, bank statement, a brief report on utilisation along with photographs of activities, if any and such other documents as may be required by the Central Government.

5. Utilisation of Foreign Contribution (Rule 9)

A new Explanation 2 to Rule 9 clarifies that foreign contribution received shall be utilised only for activities carried out in India in accordance with the stated objectives of the association and for the purposes for which such contribution has been received.

6. Introduction of “Key Functionary” and Consequential Changes

A new definition of “key functionary” has been inserted under Rule 2(1)(ca). In relation to a person other than an individual, it includes a Director of a company, partner in a firm, trustee of a trust, Karta of a Hindu undivided family, office bearer or member of the governing body, managing committee or other controlling authority of a society, trust, trade union or association of individuals, and any other officer or person, by whatever name called, having control over, or responsibility for, the management or affairs of such person.

Corresponding amendments have been made in the Rules to align existing references with the newly defined expression. Rule 5, relating to administrative expenses, now refers to key functionaries in place of Members of the Executive Committee or Governing Council in the relevant clauses. Similarly, Rules 9 and 12 now require the prescribed affidavit from each key functionary, replacing the earlier references to each office bearer, key functionary and member. Corresponding terminology relating to key functionaries has also been incorporated in Rule 9(2)(f)(ii) concerning registration and Rule 17A(iv) concerning change in the composition of key members/functionaries.

7. Foreign Nationals as Key Functionaries (Rule 9)

A new Explanation 1 to Rule 9 provides that an association having foreign nationals, other than those of Indian origin, as its key functionaries shall ordinarily not be considered eligible for grant of registration or prior permission under the Act.

However, the Central Government may, by order, specify the cases or circumstances in which foreign nationals may be permitted to be key functionaries of an association for consideration of registration or prior permission, and the conditions to be fulfilled for such consideration.

The position concerning foreign nationals in the governing structure was earlier reflected in the FCRA administrative/FAQ framework; the Amendment Rules now expressly incorporate this restriction into Rule 9 itself, codifying what was previously only administrative/FAQ-level guidance.

8. “Reasonable Activity” for Cancellation and Renewal (Rule 14A)

A new Rule 14A prescribes, for the purposes of cancellation under section 14 and renewal under section 16 of the FCRA, that an association shall be deemed to have undertaken reasonable activity in its chosen field for the benefit of society if it has utilised foreign contribution of not less than ₹10 lakh in the last two financial years for such purpose.

The Rule further clarifies that “reasonable activity” shall be deemed to include only such activity as is undertaken out of, or by utilising, foreign contribution received in accordance with the Act.

9. Detailed Activity Report and Enhanced Annual Reporting (Rule 17/Form FC-4)

Rule 17(1) has been amended to require every person who receives foreign contribution under the Act to also furnish a scanned copy of the Detailed Activity Report along with the annual return in Form FC-4 and the other prescribed documents.

The amended Form FC-4 also seeks project/activity-wise particulars, including the name of the project/activity, address/location and amount utilised towards the project/activity, fresh assets and administrative expenses.

Form FC-4 has further been amended to require additional disclosures, including the official website and social media accounts of the person/association and details of ultimate donors in case of Donor Advised Funds/Other intermediary remittance vehicles, including particulars of the intermediary and the name, address, email address and amount relating to the ultimate donor.

The amended Form also requires details of publications brought out by the association or its key functionaries during the year, including the date, nature of mass communication, title, where published/hosted and a brief description. The Chartered Accountant’s certification particulars have also been expanded to include the date of issue and UDIN of the certificate and the UDIN of the separate audited financial statements maintained for foreign contribution.

Further, sub-rules (3), (4) and (5) of Rule 17 have been omitted.

10. Other Material Changes in Prescribed Forms

The Amendment Rules also introduce additional disclosure requirements in certain prescribed Forms. Form FC-2, relating to foreign hospitality, has been amended to seek additional office and service particulars from specified categories of applicants.

Form FC-3A, for registration, has been expanded to include, inter alia, social media accounts, scope of registration specifying the purpose and geographical area of operation, and project/activity-wise details for the preceding three financial years, besides additional particulars relating to the FCRA and utilisation accounts.

Forms FC-3A, FC-3B and FC-3C have also been amended in relation to prescribed disclosures concerning whether the person/association has been constituted or established under a Central or State Act or by an administrative or executive order of the Central or State Government, whether it is wholly owned by the respective Government, and whether its accounts are required to be compulsorily audited by the Comptroller and Auditor General of India (CAG), as applicable.

Form FC-3C, relating to renewal of registration, has also been amended to require, inter alia, a year-wise Detailed Activity Report of the last three financial years along with the application for renewal.

Related Amendment to Compounding Provisions

Separately, the Central Government has issued Notification S.O. 3287(E) dated 22 June 2026, amending the existing compounding framework under section 41 of the FCRA. Among other changes, utilisation of foreign contribution for purposes other than those for which it was received is compoundable at 30% of the amount so utilised or ₹1 lakh, whichever is higher. The notification also specifically provides for compounding of a violation where foreign contribution is utilised for a purpose or in a State or Union territory for which registration has not been granted, at the same rate of 30% of the amount so utilised or ₹1 lakh, whichever is higher.

The Foreign Contribution (Regulation) Amendment Rules, 2026 bring greater specificity to the scope of registration, utilisation of foreign contribution and regulatory reporting. Persons and associations to whom the respective provisions apply should review the amended requirements and ensure timely compliance, particularly with the one-time compliance applicable to existing registrations.

For further details, readers may refer to the Foreign Contribution (Regulation) Amendment Rules, 2026 and the related Compounding Notification S.O. 3287(E) dated 22 June 2026, available on the official FCRA portal of the Ministry of Home Affairs, Government of India.

Foreign Contribution (Regulation) Amendment Rules, 2026 – Official Notification

https://fcraonline.nic.in/home/PDF_Doc/fc_gaz_23062026.pdf

Compounding Amendment – S.O. 3287(E) dated 22 June 2026

https://egazette.gov.in/(S(j0p1cgbljahy2ynvmxdtek31))/ViewPDF.aspx

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Disclaimer: The views expressed in this article are the personal views of the author and are intended for general information and awareness purposes only. Readers are advised to exercise their own due diligence and seek appropriate professional advice, wherever required, before acting on the contents of this article.

This article is confined to the Foreign Contribution (Regulation) Amendment Rules, 2026 and the related compounding amendment referred to above and does not cover the changes proposed to the Foreign Contribution (Regulation) Act, 2010 under the Foreign Contribution (Regulation) Amendment Bill, 2026.