New Delhi [India], June 23 (ANI): The Ministry of Home Affairs (MHA) has notified the Foreign Contribution (Regulation) Amendment Rules, 2026, introducing a series of changes aimed at strengthening compliance, improving transparency, and streamlining the regulation of foreign contributions received by associations in India.
Issued under the Foreign Contribution (Regulation) Act, 2010, the new rules came into force late on Monday from its publication in the Official Gazette.
A key highlight of the amendment is the expanded definition of "key functionary," which now includes directors of companies, partners in firms, trustees, "karta" of Hindu undivided families, and office bearers or individuals responsible for management and decision-making in organizations.
"In exercise of the powers conferred by section 48 of the Foreign Contribution (Regulation, Act, 2010 (42 of 2010), the Central Government hereby makes the following rules further to amend the Foreigr Contribution (Regulation) Rules, 2011. These rules may be called the Foreign Contribution (Regulation) Amendment Rules, 2026. In the Foreign Contribution (Regulation) Rules, 2011 (hereinafter referred to as the said rules), in rule 2, in sub-rule (1), after clause (c), the following clause shall be inserted, namely:- '(ca) "key functionary", in relation to a person other than an individual, includes: (i) the Director of a company; (ii) a partner in a firm (iii) a trustee of a trust; (iv) the Karta of a Hindu undivided family; (v) an office bearer, member of the governing body, managing committee or other controlling authority of a society, trust, trade union or association of individuals; and (vi) any other officer or person, by whatever name called, who has control over, or responsibility for the management or affairs of such person." reads the notification.
The amendments also mandate that registration certificates clearly specify the purpose and geographical areas--states or Union Territories--for which foreign contributions can be utilised.
Organisations applying for registration will now be "required to select their intended activities from a predefined list and declare their area of operation."
In a significant compliance requirement, entities registered prior to the amendment must, within one year, inform the government about their activity domains and operational areas through a prescribed form.
"The certificate of registration shall specify the purpose or purposes and the States or Unior territories for which registration is granted. Every application for registration shall mention--the purpose or purposes for which registration is sought, chosen only from such list of purposes as specified in the Schedule appended to these rules; and the States or Union territories in which the association proposes to undertake the activities. Every association registered before the commencement of the Foreign Contribution (Regulation, Amendment Rules, 2026 shall, within one year of such commencement, submit to the Centra Government an intimation in Form FC-6F specifying the purpose or purposes and the States or Unior territories for which it seeks to retain its registration," it mentions.
The rules also introduce additional fees for organisations seeking to operate in multiple states or undertake multiple purposes.
"Provided that the fee specified above shall be for registration to operate in one State or Union territory and to conduct activities for one purpose only; and where the application relates to more than one State or Union territory, an additional amount of rupees three hundred per State or Union territory shall be payable, and where the application relates to more than one purpose, an additional amount of rupees three hundred per purpose shall be payable," it mentions.
Further tightening utilisation norms, the government has stipulated that release of subsequent instalments of foreign funds will be allowed only after at least 75 per ent of previously received funds have been utilised, subject to field verification.
A new provision defines "reasonable activity" for renewal and cancellation purposes, requiring organisations to utilise a minimum threshold of foreign funds over the past two financial years to remain compliant.
The amendments also introduce a structured classification of permissible activities across sectors such as religious, cultural, economic, educational, and social domains. These include areas like heritage preservation, education, healthcare, rural development, women's empowerment, and environmental protection.
Additionally, organisations must now furnish detailed disclosures, including social media accounts, past financial utilisation, and governance details. New formats such as Form FC-3BB have been introduced for seeking release of subsequent instalments, along with stricter documentation requirements certified by chartered accountants.
The government has also clarified that organisations with foreign nationals as key functionaries will generally not be eligible for registration, except in specific cases approved by authorities.
The move is seen as part of the Centre's continued efforts to ensure greater accountability and transparency in the inflow and utilisation of foreign funds by NGOs and other entities operating in India. (ANI)
