Published on: October 22, 2023

FCRA licenses

FCRA licenses

Why in news? Ayodhya Ram temple trust gets FCRA licence to receive foreign donations


  • Ministry of Home Affairs will grant permission for FCRA licence to institution for 5 years
  • It is provided under Foreign Contribution Regulation Act (FCRA).
  • Institution/organization/ NGO are required to be registered under FCRA to receive fund

FCRA registrations

  • Registration under the FCRA is mandatory to receive donations from outside of India.
  • The NGOs applying for an FCRA license must define their activities under a category such as cultural, economic, educational, religious, or social programmes.
  • It aims to regulate organisations and prohibits foreign funds indulging in “any activities detrimental to the national interest”.

Eligibility Criteria

  • Registered under societies registration act 1860 or Indian trust act 1882 or companies act 2013
  • It should have existence for period of 3 years
  • Spent atleast Ten lakh over the last three years on its social service activites that benefits the society
  • Open a bank account in State Bank of India, Delhi for the receipt of the foreign funds


  • License validity is for 5 years
  • NGOs to apply for renewal within six months of the date of expiry of registration.


  • The FCRA was first enacted in 1976 during the Emergency, when concerns were raised regarding the influence of ‘foreign powers’ in Indian affairs via transferring money to independent organisations.

Foreign Contribution (regulation) Act, 2010

  • It is a consolidating act to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals or associations or companies


  • It made mandatory for office bearers of any non-governmental organisation (NGO) to provide their Aadhaar numbers.
  • Gives the government the power to hold a “summary enquiry” to prevent an organization from using foreign funds.
  • Amendment in 2022 :Only once a year the organizations in FCRA can file the audited balance sheet in the website of the Ministry or also on their own website

FCRA 2022 Rules

  • Exemption from intimation to the government with contributions less than Rs 10 lakh( earlier Rs 1 lakh) received from relatives abroad,
  • MHA has increased in time limit for intimation of opening of bank accounts.