The Foreign Contribution (Regulation) Rules, 2011 is a set of procedural provisions notified by the Ministry of Home Affairs (MHA) to implement the Foreign Contribution (Regulation) Act, 2010 (FCRA, 2010). The FCRA, 2010 is an Act of Parliament that regulates the acceptance and utilisation of "foreign contribution" or "foreign hospitality" by individuals, associations, and companies in India. The original Act was first enacted in 1976 due to concerns about foreign meddling in India's domestic affairs, and the FCRA, 2010 replaced it to streamline the law and impose stronger controls. The core problem the law addresses is ensuring that foreign funds are not used for activities detrimental to India's national interest, sovereignty, security, or democratic processes.
The Rules provide the mandatory framework for registration, prior permission, and reporting for entities, such as Non-Governmental Organisations (NGOs), that wish to receive foreign funds. A key mechanism is that any person intending to receive foreign contribution must either obtain a registration certificate, which is valid for five years, or obtain prior permission from the Central Government for a specific project. Foreign contributions must be received only in a designated bank account, which is currently mandated to be with the State Bank of India's New Delhi branch. The Rules also mandate that foreign funds must be utilised only for the purpose for which they were received, and administrative expenses are capped at 20% of the foreign contribution received in a financial year.
The Rules have undergone several amendments, including significant changes in 2022 and 2026. For instance, the Foreign Contribution (Regulation) Amendment Rules, 2022 increased the monetary threshold for intimation to the Central Government for foreign contribution received from relatives from ₹1 Lakh to ₹10 Lakh. More recently, the June 2026 amendments tightened oversight by requiring organisations to specify their purpose from a list of 105 approved activities and the specific States or Union Territories where they will operate. These amendments also expanded the definition of "key functionary" and generally made associations with foreign nationals as key functionaries ineligible for FCRA registration. Furthermore, the new rules expressly prohibit the use of foreign contributions for proselytisation.