FCRA (Amendment) Act, 2020
Structural Tightening
The Foreign Contribution (Regulation) Amendment Act, 2020 was passed by Parliament and received Presidential assent on September 28, 2020. It represented the most far-reaching overhaul of the FCRA regime since 2010. The amendment prohibited any FCRA-registered entity from sub-granting funds to another entity — even one independently registered under FCRA — effectively ending the "pass-through" funding model used by many large intermediary NGOs. It also mandated that all foreign contributions first flow through a specific "FCRA account" opened exclusively with the State Bank of India's New Delhi Main Branch.
- Administrative expenses cap reduced from 50% to 20% of total foreign funds received in a year.
- Aadhaar authentication required for all office-bearers, directors, and key functionaries as a condition of registration and renewal.
- The renewal window was shortened, and the prior permission route made more stringent.
- No sub-granting: organisations that previously acted as intermediaries distributing funds to smaller NGOs can no longer do so under FCRA, pushing smaller entities to seek individual registration.
● Tracked since June 24, 2026 · last seen September 03, 2026 · updates as the daily brief publishes
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