More than 20,000 NGOs across India have had their FCRA registrations cancelled since 2020. Reasons range from missed annual returns to sub-granting violations, improper SBI account usage, and failure to comply with the 2020 FCRA Amendment. If your organisation receives — or plans to receive — foreign contributions, this guide covers everything you need to stay compliant in 2025.
The Foreign Contribution (Regulation) Act, 2010 (FCRA) regulates the acceptance and utilisation of foreign contributions by persons and associations in India. Any Indian association, NGO, trust, society, Section 8 company, or individual that wishes to receive money, gifts, or donations from foreign sources must obtain FCRA registration — there are no exceptions.
Foreign contribution under FCRA includes: cash, cheque, or wire transfers from foreign nationals or entities; securities or shares from foreign sources; articles gifted by foreign persons; and currency of a foreign country. Importantly, NRI donations are also treated as foreign contributions under FCRA — a common misconception is that money from NRI Indians is domestic.
If an NRI donates to your NGO — even by transferring rupees from an NRO account to your Indian bank account — it is legally a "foreign contribution" under FCRA. You must have FCRA registration before accepting it. Receiving foreign contributions without registration is a criminal offence under Section 37 of FCRA, punishable with up to 5 years imprisonment.
To apply for FCRA registration (as opposed to prior permission), your organisation must satisfy all of the following:
| Feature | Prior Permission (FC-3B) | Full Registration (FC-3A) |
|---|---|---|
| For whom | Organisations less than 3 years old or those receiving a specific grant from a specific donor | Organisations at least 3 years old with ₹15 lakh expenditure track record |
| Validity | Single project / donor — not transferable | 5 years, renewable |
| Donor requirement | Must name the specific foreign donor in the application | Can receive from any approved foreign source |
| Application fee | ₹500 | ₹2,000 |
| Processing | Typically faster; 60 days | 90 days (may be extended) |
One of the most significant changes under the 2020 FCRA Amendment: all foreign contributions must first be received in a designated FCRA account at SBI's New Delhi Main Branch (Branch code: 00691, IFSC: SBIN0000691). This is mandatory for all FCRA-registered organisations, regardless of where they are located in India — an NGO in Chennai or Kolkata must have this New Delhi SBI account.
After receiving funds in the SBI New Delhi FCRA account, organisations can transfer money to utilisation accounts at other banks for operational use. The key rule: the receipt must happen at SBI New Delhi. Receiving foreign contributions directly in any other bank account — even another SBI branch — is a FCRA violation.
Many small NGOs have lost their FCRA registration because foreign donors sent money directly to their local state bank accounts (even accidentally). Immediately inform your foreign donors of your SBI New Delhi FCRA account details. Prepare a standard wire instruction document with the account number, IFSC, and SWIFT code (SBININBBNDL) to share with all foreign donors.
The FCRA (Amendment) Act, 2020 brought four major changes that have tripped up thousands of NGOs:
The MHA notified fresh FCRA rules in May 2025, further tightening compliance:
Every FCRA-registered organisation must file Form FC-4 on the FCRA Online portal by December 31 every year, covering the preceding financial year (April–March). This is mandatory even if the organisation received zero foreign contributions during the year.
Form FC-4 requires: amount of foreign contribution received, currency-wise and donor-wise details, purpose of contribution, amount utilised (activity-wise), administrative expenses incurred, opening and closing balance in FCRA accounts, and details of transfers to utilisation accounts.
If you received no foreign contributions this year, you still must file FC-4 with nil figures by December 31. Failure to file even a nil return is grounds for cancellation of FCRA registration. Many NGOs have lost their registration this way.
FCRA registration is valid for 5 years and must be renewed before expiry. The renewal application in Form FC-3C must be submitted at least 6 months before expiry (updated from 3 months under 2025 rules). If renewal is not applied for in time, the registration lapses automatically and any foreign contribution received after lapse is illegal.
Renewal requires the same documentation as fresh registration plus a record of compliance: all FC-4 returns filed, audited accounts for 5 years, evidence of activities conducted, and updated Aadhaar details of office bearers. MHA has increased scrutiny on renewals — organisations with prior violations, pending enquiries, or incomplete returns face rejection.
Administrative expenditure is capped at 20% of total foreign contributions received in the financial year. What counts as "administrative"? Salaries of staff not directly involved in programme delivery, office rent, utilities, communication costs, accounting and audit fees, and general management expenses.
What does not count as administrative: salaries of field workers, programme costs, direct beneficiary expenses, project-specific costs. The 20% cap has forced many NGOs to restructure their cost allocation. If your administrative cost ratio exceeds 20%, you may need to reclassify certain costs as programme costs with supporting documentation, or reduce administrative overheads.
| Violation | Consequence |
|---|---|
| Receiving foreign contribution without registration | Imprisonment up to 5 years + fine equal to amount received |
| Sub-granting to another organisation | Cancellation + fine up to 5x the amount transferred |
| Filing false return or concealing information | Imprisonment up to 6 months + fine |
| Failure to file annual return | Cancellation of registration + fine |
| Utilisation for prohibited purposes | Cancellation + criminal prosecution |
| Non-reporting of foreign travel by office bearers | Show-cause notice, suspension of registration |
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