The Foreign Contribution (Regulation) Act (FCRA) is an Act of the Indian Parliament that regulates the acceptance and utilisation of foreign contributions or foreign hospitality by individuals, associations, and companies. The original FCRA was first enacted in 1976 during the Emergency, driven by concerns over foreign meddling in India's domestic affairs and the potential for foreign funds to be used for activities detrimental to national interest. The 1976 Act was repealed and replaced by the consolidating Foreign Contribution (Regulation) Act, 2010, which came into force on May 1, 2011, to streamline the law and impose stronger controls.
The Act is administered by the Ministry of Home Affairs (MHA), as it is considered a law related to internal security. Its core mechanism requires any entity with a definite cultural, economic, educational, religious, or social programme to obtain a certificate of registration or prior permission from the Central Government before receiving foreign funds. Key provisions include the mandate that foreign contributions must be received only in a designated "FCRA Account" at a specified branch of the State Bank of India in New Delhi. Furthermore, Section 3(1) prohibits certain persons from accepting foreign contributions, including candidates for election, judges, members of any legislature, political parties, and government servants.
The FCRA connects to other regulatory concepts like the Foreign Exchange Management Act, 1999 (FEMA), as "foreign contribution" includes currency and securities from a "foreign source". The Act was significantly amended by the Foreign Contribution (Regulation) Amendment Act, 2020, which came into force on September 29, 2020. The 2020 Amendment introduced major changes: it reduced the limit for using foreign contribution for administrative expenses from 50% to 20% of the funds received, and it amended Section 7 to prohibit the transfer of foreign contribution to any other person or association. It also inserted Section 12A, empowering the Central Government to require the Aadhaar number as an identification document for key functionaries.