IAS Gyan

Daily News Analysis

Foreign Contribution Regulation Act (FCRA)

7th September, 2020 Security

Context: Government suspends FCRA clearance of 4 Christian groups


  • Of the six NGOs whose license under the Foreign Contribution Regulation Act (FCRA) was suspended by the Union Home Ministry this year, four are Christian associations.
  • An FCRA license is mandatory for a non-profit organisation to receive foreign funds.
  • At least two U.S.-based Christian donors are also under the Ministry’s scanner for funding NGOs and groups.


  • Any organisation, association or NGO in India cannot receive foreign funds if they do not have a license under the FCRA, which is regulated by the Home Ministry.
  • Suspension of FCRA license means that the NGO can no longer receive fresh foreign funds from donors pending a probe by the ministry.
  • The Foreign Contribution (regulation) Act, 2010 is an act of the Parliament of India, by the 42nd Act of 2010.
  • It is a consolidating act whose scope is to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to the national interest and for matters connected therewith or incidental thereto.