On 26-5-2025, the Ministry of Home Affairs notified Foreign Contribution (Regulation) Amendment Rules, 2025 to introduce significant refinements in provisions and a stronger regulatory framework for receiving foreign contribution. The Rules came into force on 26-5-2025.
Key Points:
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These Amendments enhance financial transparency, procedural compliance, and accountability while safeguarding India against foreign funds by introducing significant changes to the Foreign Contribution (Regulation) Rules, 2011 (‘FCRA’).
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The documentation process has been streamlined by removing the requirement for persons or organizations applying for registration (FC-3A), prior permission (FC-3B), or renewal (FC-3C) to submit separate pages outlining their aims and objectives.
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To strengthen compliance ‘Good Practice Guidelines of the Financial Action Task Force’, donor commitment letter and project reports will have to be submitted by the applicants seeking prior permission to receive foreign contributions.
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Organisations applying for returns under FC-4, will have to disclose project details, locations, valuation, and such other details for better financial transactions. It mandatory to report all the assets acquired through foreign contribution- movable or immovable.
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Chartered Accountants are required to provide project-wise and location-wise details of all foreign fund deployments to enhance scrutiny and ensure FCRA compliance.
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Applicants seeking a change in name and/or address under forms FC-6A to FC-6E will be providing necessary documents- approval of relevant authority, bank confirmations, affidavits for leadership modifications and a resolution from the Governing body.
