Recently, the Ministry of Home Affairs (MHA) notified amendments to the Foreign Contribution (Regulation) Rules, 2011, through the Foreign Contribution (Regulation) Amendment Rules, 2025, under the powers conferred by Section 48 of the FCRA Act, 2010.

New FCRA Guidelines Financial Documentation for Applicants

• NGOs and associations seeking FCRA registration or renewal must now submit audited financial statements and reports for the past three financial years.
  • These documents must include:

• • • Statement of assets and liabilities.
    • Receipts and payments account.
    • Income and expenditure account.
• CA Certification: If the financial statements do not include activity-wise expenditure, a certificate from a Chartered Accountant must be submitted.
  • This certificate must specify activity-wise amount spent, reconciled with the income and expenditure and receipts and payments accounts.
• Activity Report: Applicants must submit year-wise activity reports for the last three years.
• Capital Investment Disclosure: If expenditure on the NGO’s aims and objectives is less than ₹15 lakh in the past three years, an affidavit must be submitted clarifying the inclusion of capital investments in the expenditure.
• Affidavit for Previously Registered NGOs: NGOs that were previously registered under the FCRA and whose certificate has expired or been cancelled must submit an affidavit detailing receipt and utilisation of foreign contributions during the non-registration period.
• Adherence to FATF Guidelines: All applicants must provide an undertaking to adhere to the Financial Action Task Force (FATF) Good Practice Guidelines, as part of the registration or renewal process.

Restrictions on NGOs

• Ban on Publishing News Content: NGOs that receive foreign funds and are involved in publication-related activities are barred from publishing news content.
  • They must submit a certificate from the Registrar of Newspapers for India confirming that they do not circulate any news content.
• Undertaking with Publication Aims: If an NGO’s Memorandum of Association or Trust Deed includes publication as one of its objectives, the chief functionary must submit an undertaking ensuring compliance with the FCRA, 2010.

Implications on Press Freedom and Civil Society Regulations

• Curtailment of Free Expression: The amendment effectively prohibits NGOs receiving foreign funding from engaging in any journalistic or news-publishing activity, even if aligned with their stated objectives.
  • This introduces a significant regulatory barrier to freedom of expression, especially for NGOs involved in human rights, transparency, or investigative work.
• Increased Regulatory Burden: The new rules introduce more complex procedural requirements, including detailed financial reconciliations and multiple affidavits.
  • This could discourage smaller NGOs from seeking or continuing FCRA registration.
• Impact on effectiveness of NGOs : The combination of compliance with FATF guidelines, publication bans, and stricter documentation could create a chilling effect on civil society organisations, potentially stifling dissent and limiting foreign-funded developmental or advocacy efforts.

Way Forward

• Balanced Regulation: Ensure regulations protect national interest without disproportionately restricting NGO operations and expression.
• Clearer Definitions: Clearly define “news content” to avoid ambiguity and prevent arbitrary denial of FCRA registration.
• Grievance Redressal Mechanism: Establish an independent appellate mechanism for NGOs facing FCRA-related denials.
• Global Best Practices: In the US, NGOs enjoy strong First Amendment protections. The UK and EU allow NGOs to publish content with transparency norms but without content restrictions, balancing free speech and security.

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