Amendments to FCRA aimed at bringing in more transparency: India’s US envoy

India’s ambassador to the US, Vinay Mohan Kwatra, addressed concerns over amendments to the Foreign Contribution (Regulation) Act (FCRA) in a series of posts on X. The amendments, which came into effect in 2026, aim to enhance transparency and better governance in the regulation of foreign funds received by NGOs, civil society, educational institutions, and religious organizations.

Kwatra emphasized that the amendments are driven by national security concerns, akin to similar laws enacted by the US, Australia, Canada, the UK, and the EU.

Kwatra clarified that the new law does not target civil society organizations, as tens of thousands of associations already receive foreign funds for various purposes, including health, education, disaster relief, research, and humanitarian work. He reassured that the Act applies uniformly to all organizations, irrespective of religion, community, or ideology.

In the event of an organization's registration being cancelled or surrendered, assets previously created from foreign contributions would be transferred to a designated authority under previous provisions. If the organization reinstates its registration, all assets and unused funds would be returned in full. Kwatra also highlighted that India has over three million NGOs, of which only 14,450 hold FCRA registration, indicating that the majority of civil society organizations are outside the Act's purview.