FCRA Amendment Rules 2026: ₹10 Lakh Threshold & FCRA 2.0 Portal
MHA's FCRA Amendment Rules, 2026 introduce a numeric ₹10 lakh utilisation test for 'reasonable activity', a 75% instalment-release rule, and a new FCRA 2.0 filing portal. Every FCRA-registered association must file Form FC-6F by 21 June 2027 or risk being treated as non-compliant.
CA Harun Raaj
Chartered Accountant · Harun Raaj & Associates
Legal basis: Foreign Contribution (Regulation) Act, 2010, Section 14(1)(b) (quantified by new Rule 14A of the FCRA Amendment Rules, 2026) — Effective: 22 June 2026 (S.O. 3272(E)). Source: https://www.mbgcorp.com/in/insights/ministry-of-home-affairs-notifies-notified-foreign-contribution-regulation-amendment-rules-2026-and-launches-of-fcra-2-0-portal/. Last reviewed by CA Harun Raaj: September 2026.
The Ministry of Home Affairs notified the Foreign Contribution (Regulation) Amendment Rules, 2026 via S.O. 3272(E) on 22 June 2026, effective immediately. Eight days later, on 30 June 2026, the government launched FCRA 2.0 — a redesigned digital portal that replaces the earlier fcraonline.nic.in interface. Roughly 14,449 active FCRA certificate holders — trusts, Section 8 companies, societies, educational institutions, hospitals, and research bodies — now operate under a materially different compliance framework. This piece walks through the seven changes and the filing deadline every registered association needs on its calendar.
The Seven Key Amendments
1. A numeric utilisation test — Rule 14A (new)
An association is now deemed to have undertaken "reasonable activity in its chosen field" only if it has utilised at least ₹10 lakh of foreign contribution across the last two financial years combined. Section 14(1)(b) of the FCRA, 2010 already permits cancellation of registration where an association shows no reasonable activity for two consecutive years — Rule 14A is the first time that test has been given a number. Only expenditure funded from foreign contribution counts; spend from domestic income does not satisfy the threshold. An association that receives, say, ₹8 lakh over two years, or that receives ₹10 lakh but parks it unused, risks cancellation even if it is otherwise functioning normally.Key point: Under new Rule 14A, an FCRA-registered association must show at least ₹10 lakh of foreign-contribution-funded spend over the preceding two financial years to avoid the "no reasonable activity" ground for cancellation under Section 14(1)(b).
2. 75% utilisation before the next instalment — Rule 9A proviso (new)
Where foreign contribution is released in instalments — the norm for project-funded grants — the second and every subsequent instalment will now be released only after 75% of the previous instalment has been utilised. Associations running multi-tranche grants should build this checkpoint into their fund-utilisation reporting to donors and to MHA.3. Purpose and geography declaration — Rule 9(1B)
New applications and renewals must now specify the purpose from a government-prescribed scheduled list, and the state(s) or union territory(ies) where the foreign contribution will actually be utilised. Existing registrants must align their registration to this framework through Form FC-6F.4. "Key functionary" defined — Rule 2(1)(ca)
The Rules now define "key functionary" as any director, partner, trustee, or governing body member who exercises control over the association. This definition drives who is subject to the background check and Aadhaar verification steps on the FCRA 2.0 portal.5. Form FC-6F for change of purpose or area — Rule 17B
Associations can now formally add or delete an approved purpose, or add/remove an operational state, by filing Form FC-6F along with a governing body resolution. The fee is ₹300 per state or purpose added.6. A stricter renewal form — Form FC-3BB
The renewal application now asks for a CA certificate, bank statements, activity photographs, and a declaration of no regulatory violations — a noticeably higher evidentiary bar than the earlier renewal process.7. The FCRA 2.0 portal
Live since 30 June 2026, FCRA 2.0 brings Aadhaar-based login, e-signatures, OCR-based document checks, and a dashboard linking PAN, NGO Darpan, and MHA records. FC-3C renewals, FC-4 annual returns, and Form FC-6F filings must all now go through this portal.Old Rules vs FCRA Amendment Rules, 2026
Who This Affects
Every organisation holding FCRA registration under the FCRA, 2010 and receiving foreign contribution — charitable trusts, Section 8 companies, societies, educational institutions, hospitals, and research organisations — falls within these Rules. That is approximately 14,449 active FCRA certificate holders as of mid-2026.
The June 2027 Filing Deadline
Every existing FCRA-registered association must file Form FC-6F on the FCRA 2.0 portal by 21 June 2027, declaring the purpose(s) from the scheduled list and the state(s)/UT(s) of operation. The exact G.S.R. notification number fixing this deadline should be verified against the current text on fcraonline.nic.in before it is cited in a formal advisory — treat the date given here as the compliance target to plan around, not a substitute for checking the primary notification.
FC-4 Annual Return Stays on Schedule
Separately, and unaffected by the above, the FCRA annual return for FY 2025-26 (Form FC-4) remains due on 31 December 2026. It too must now be filed through the FCRA 2.0 portal.
What Non-Compliance Costs
- Breaching the Rule 14A threshold exposes an association to cancellation of FCRA registration under Section 14(1)(b) of the FCRA, 2010, for not engaging in reasonable activity for two consecutive years.
- Not filing Form FC-6F by 21 June 2027 risks the registration being treated as non-compliant under the amended Rules.
- Missing the 75% utilisation mark under Rule 9A blocks release of the next instalment, disrupting project timelines and donor commitments.
- Where registration is cancelled, Section 17 of the FCRA, 2010 provides that the association's assets vest in the government.
Associations that track their foreign-contribution-funded spend, calendar the FC-6F deadline, and prepare renewal documentation early will move through this transition without disruption to their registration or their project funding.
I'm CA Harun Raaj, Visakhapatnam.
If your organisation holds FCRA registration and needs help mapping these amendments to your specific filings, reach out to our team.
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See Also
Frequently Asked Questions
What is the new ₹10 lakh threshold under the FCRA Amendment Rules, 2026?
New Rule 14A deems an association to have undertaken "reasonable activity in its chosen field" only if it has utilised at least ₹10 lakh of foreign contribution across the last two financial years combined. This quantifies, for the first time, the "reasonable activity" test in Section 14(1)(b) of the FCRA, 2010.
Does domestic income spend count toward the ₹10 lakh utilisation threshold?
No. Rule 14A specifies that only expenditure funded from foreign contribution counts toward the threshold; amounts spent from domestic income do not satisfy the test.
When must existing FCRA-registered NGOs file Form FC-6F?
Every existing FCRA-registered association must file Form FC-6F on the FCRA 2.0 portal by 21 June 2027, declaring the approved purpose(s) and the state(s)/UT(s) of operation. Verify the exact notification against fcraonline.nic.in before relying on the date for a formal filing.
What happens if an NGO doesn't utilise 75% of a foreign contribution instalment?
Under the new Rule 9A proviso, the next instalment of an FC grant will not be released until at least 75% of the previous instalment has been utilised. This applies to all instalment-based foreign contribution receipts.
Is the FCRA annual return FC-4 deadline changing under the 2026 Rules?
No. The FC-4 annual return for FY 2025-26 remains due on 31 December 2026, but it must now be filed through the FCRA 2.0 portal rather than the earlier interface.
What is a "key functionary" under the FCRA Amendment Rules, 2026?
New Rule 2(1)(ca) defines a key functionary as a director, partner, trustee, or governing body member who exercises control over the association. This definition determines who undergoes background checks and Aadhaar verification on the FCRA 2.0 portal.
What is the fee for filing Form FC-6F to add a new state or purpose?
Under Rule 17B, adding or deleting an approved purpose or operational state requires filing Form FC-6F with a governing body resolution, at a fee of ₹300 per state or purpose added.
What documents does the strengthened renewal Form FC-3BB require?
The renewal application now requires a CA certificate, bank statements, activity photographs, and a declaration of no regulatory violations, a higher evidentiary bar than the earlier renewal process.
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