The Ministry of Home Affairs (MHA) on June 22, 2026, issued the Foreign Contribution (Regulation) Amendment Rules, 2026, to further amend the Foreign Contribution (Regulation) Rules, 2011.
The following has been stated:
• A new definition of “key functionary” has been introduced, covering directors, partners, trustees, office bearers, governing body members, and other persons responsible for the management of an association.
• Registration certificates shall specify the approved purpose(s) and State(s)/Union Territory(ies) for which registration is granted. Existing registered associations must furnish these details to the Central Government within one year in Form FC-6F.
• Associations having foreign nationals (other than persons of Indian origin) as key functionaries shall ordinarily not be eligible for registration or prior permission, except in specified cases approved by the Central Government.
• Foreign contributions shall be utilized only for activities carried out in India and strictly for the purposes for which such contributions have been received.
• Release of the second or subsequent instalments of foreign contribution shall be permitted only after utilization of 75% of the previous instalment and completion of a field inquiry regarding such utilization.
• A new provision prescribes that an association shall be deemed to have undertaken reasonable activity if it has utilized at least ₹10 lakh of foreign contribution during the last two financial years for its approved objectives.
• Associations shall be required to submit a detailed activity report along with their annual returns.
Please read the document attached below for more details.
[S.O. 3272(E).]
