India tightens foreign funding rules with 2026 FCRA amendment

India’s Ministry of Home Affairs issued the Foreign Contribution (Regulation) Amendment Rules, 2026, bringing a suite of changes to the 2010 FCRA framework. The amendments expand the definition of “key functionary” to include directors, partners, trustees, heads of Hindu undivided families and other senior officers of NGOs. Organisations must now specify the purpose of foreign funds and the states or union territories where they will be used, selecting from a predefined list, and they face additional fees of ₹300 per extra state or purpose. Release of subsequent foreign‑fund instalments will be allowed only after at least 75% of prior funds have been spent.

The accompanying amendment Bill creates a Designated Authority empowered to take temporary control of assets of any NGO whose FCRA registration is cancelled, surrendered, expires or is not renewed, with the possibility of transfer to government departments or sale. It also centralises investigative powers, requiring prior approval from the central government for any inquiry, and reduces the maximum imprisonment for certain FCRA offences from five years to one year. The proposal has drawn criticism from evangelical groups and US lawmakers, who warn it could enable asset seizure and impose tighter restrictions on foreign‑funded civil‑society organisations.