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06/24/2026 June 24, 2026 Government tightens foreign funding rules for NGOs India's Home Ministry has introduced changes to the Foreign Contribution (Regulation) Act (FCRA) which
06/24/2026 June 24, 2026 Government tightens foreign funding rules for NGOs India's Home Ministry has introduced changes to the Foreign Contribution (Regulation) Act (FCRA) which will impose higher penalties on Non-Governmental Organizations (NGOS) for several offences related to the receipt and usage of foreign contributions. NGOs that utilize other than the permitted 20% of the foreign contributions on administrative expenses will now face a penalty of Rs 1 lakh or 5% of the excess amount spent, whichever is more, according to a report by Indian newspaper Financial Express.
Rules regarding the registration under FCRA is where heavy revision has been made. Reportedly, the new rules oblige organizations applying for foreign funding to clarify its exact purpose. "Every application for registration shall mention the purpose or purposes for which registration is sought" and the states or Union Territories where the association proposes to undertake activities.
Under the religious purposes, activities range from construction to renovation, and maintenance of religious places, religious education, and promotion of devotional music, among others. Since 2014, Prime Minister Narendra Modi's government has tightened restrictions on non-profit groups, suspending
many and banning others from receiving foreign funding, accusing them of funneling the funds toward "anti-national activities." In 2020, a major FCRA amendment banned the transfer of foreign funds between NGOs, cutting administrative expense limits from 50% to 20%.
