ForeignFunding – MHA Introduces New Religious Activity Framework Under FCRA Rules
ForeignFunding – The Ministry of Home Affairs (MHA) has announced significant changes to the Foreign Contribution (Regulation) Rules through the newly notified Foreign Contribution (Regulation) Amendment Rules, 2026. The revised framework introduces a clearer classification of activities that fall under the religious category while strengthening compliance obligations for organisations that receive foreign contributions in India.
Detailed Classification of Religious Activities
Under the amended rules, a separate schedule has been introduced to define activities that qualify for registration under religious purposes. The framework recognises a broad range of religious initiatives, including the construction, restoration, upkeep and management of places of worship. These cover temples, mosques, churches, gurudwaras, monasteries, synagogues and other recognised religious institutions.
The updated schedule also includes activities linked to the preservation and dissemination of religious literature. This covers printing, translating, archiving and digitising sacred texts and related commentaries. Institutions engaged in the study of religious history, traditions and philosophy will also be eligible under the approved category.
Support for Pilgrims and Community Services
The rules permit organisations to undertake projects that improve facilities for pilgrims visiting religious and heritage sites. Such initiatives may include providing drinking water, sanitation services, shelters and other basic amenities.
In addition, community-oriented programmes such as dharamshalas, free meal services, community kitchens and charitable food distribution initiatives have been recognised as permissible religious activities under the revised framework.
Cultural and Educational Activities Included
The amendment extends eligibility to programmes involving religious education, moral guidance, spiritual gatherings, meditation camps and religious discourses. Activities promoting devotional music, chanting traditions, religious theatre and other liturgical art forms have also been included.
The government has further recognised efforts aimed at documenting, preserving and reviving indigenous and tribal faith traditions. However, the revised rules make it clear that activities involving religious conversion or proselytisation remain outside the scope of permissible activities.
Greater Accountability Through Compliance Measures
Alongside the classification of activities, the MHA has introduced a series of compliance-focused reforms intended to improve transparency in the use of foreign funds.
One of the major changes is the introduction of the term “key functionary.” The definition broadens responsibility beyond traditional office-bearers and includes directors, trustees, partners, karta of Hindu Undivided Families and other individuals involved in the management or control of an organisation.
Registration Process Becomes More Specific
The amended framework requires registration certificates to clearly mention both the purpose of the organisation and its geographical area of operation. Applicants must now select their objectives strictly from the categories listed in the official schedule and specify the states or Union Territories where activities will be conducted.
Existing organisations registered under the Foreign Contribution (Regulation) Act have been granted a one-year period to provide updated information in accordance with the revised requirements.
New Restrictions and Fund Utilisation Rules
The government has also tightened eligibility conditions. Organisations having foreign nationals as key functionaries, except individuals of Indian origin, will generally not qualify for registration unless specific approval is granted.
Another important provision requires organisations to utilise at least 75 percent of previously received foreign contributions before they become eligible to receive additional foreign funding. The amendment also introduces defined standards for assessing reasonable levels of activity based on fund utilisation over a specified period.
Expanded Disclosure Requirements
To strengthen oversight, organisations will now be required to disclose their social media handles, official websites and publications, including books, magazines and articles. The revised rules also introduce updated fee structures, with additional charges applicable in cases involving multiple operational purposes or activities spread across several states.
According to the Ministry of Home Affairs, the amendments are intended to simplify the regulatory framework, improve accountability and establish clearer definitions for activities across religious, educational, cultural and social sectors. The Foreign Contribution (Regulation) Act, first enacted in 1976 and later replaced by the 2010 legislation, continues to require organisations receiving foreign funds to renew their registrations every five years.