Centre clarifies FCRA bill: Religious character of Places of Worship will remain protected; assets can be managed only after due process
Responding to another criticism that cancellation of an NGO"s FCRA registration amounts to a finding of misconduct, the government said this interpretation is incorrect.
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Amid concerns raised by several Christian organisations over the proposed Foreign Contribution (Regulation) Amendment Bill, 2026, the Central Government has issued a detailed clarification, stating that the legislation does not empower authorities to alter the religious character of churches or other places of worship and that any action under the law will follow due legal process.
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Government responds to concerns
One of the major concerns raised by sections of Christian institutions relates to the proposed appointment of a Designated Authority, which would manage assets created from foreign contributions when an organisation's FCRA registration is suspended, cancelled or not renewed.
Addressing these apprehensions, the PIB clarified that the Designated Authority would only manage assets created through foreign contributions, and only after an organisation's FCRA registration has lawfully ceased. The government further emphasised that if an organisation's registration is subsequently renewed, the assets would be restored.
Importantly, the PIB stated:
"Places of worship retain their religious character by law in all cases." It also clarified that the Designated Authority's decisions are subject to revision and appeal before the District Judge, ensuring judicial oversight.
Cancellation does not automatically mean wrongdoing
According to the PIB, many cancellations or non-renewals occur due to administrative reasons such as:
Failure to file annual returns;
Non-renewal of registration before expiry;
Failure to maintain designated bank accounts.
The government added that courts continue to have full powers to review cancellation orders.
Over 16,000 organisations continue receiving foreign funds
The PIB also rejected allegations that the FCRA framework is intended to curb civil society organisations.
FCRA not limited to religious organisations
Another clarification issued by the PIB addressed the perception that FCRA primarily targets NGOs or religious bodies.
The government noted that comparable foreign influence laws in several countries regulate a much wider range of entities, including lobbying firms, think tanks, universities, public relations firms and companies acting on behalf of foreign principals.
Background
Earlier this month, Union Home Minister Amit Shah met a delegation of the Catholic Bishops' Conference of India (CBCI), which had raised concerns over the proposed FCRA Amendment Bill, 2026, and the recently notified FCRA Amendment Rules, 2026. Following the meeting, CBCI officials stated that the Home Minister assured the delegation that the proposed legislation was not directed against Christian NGOs and acknowledged the Church's contribution to the fields of education and healthcare. The FCRA Rules, 2026, require organisations receiving foreign contributions to clearly specify the nature of their activities under the permitted categories and the geographical areas in which they operate.
The Centre maintains that the objective of the amendments is to improve transparency, accountability and oversight in the utilisation of foreign contributions while ensuring that legal safeguards, including judicial remedies, remain available.
The clarification was issued by the Press Information Bureau (PIB) on July 22 through a "Myth vs Fact" document explaining key provisions of the proposed amendments.
Government responds to concerns
One of the major concerns raised by sections of Christian institutions relates to the proposed appointment of a Designated Authority, which would manage assets created from foreign contributions when an organisation's FCRA registration is suspended, cancelled or not renewed.
Addressing these apprehensions, the PIB clarified that the Designated Authority would only manage assets created through foreign contributions, and only after an organisation's FCRA registration has lawfully ceased. The government further emphasised that if an organisation's registration is subsequently renewed, the assets would be restored.
Importantly, the PIB stated:
"Places of worship retain their religious character by law in all cases." It also clarified that the Designated Authority's decisions are subject to revision and appeal before the District Judge, ensuring judicial oversight.
Cancellation does not automatically mean wrongdoing
Responding to another criticism that cancellation of an NGO's FCRA registration amounts to a finding of misconduct, the government said this interpretation is incorrect.
FCRA: Foreign Contribution (Regulation) Act
— PIB India (@PIB_India) July 22, 2026
➜ Foreign Contribution (Regulation) Act (FCRA) is the law that governs how Indian individuals, associations, NGOs, trusts and companies may receive and use money, securities or articles sent to them from a source outside India. It is…
According to the PIB, many cancellations or non-renewals occur due to administrative reasons such as:
Failure to file annual returns;
Non-renewal of registration before expiry;
Failure to maintain designated bank accounts.
The government added that courts continue to have full powers to review cancellation orders.
Over 16,000 organisations continue receiving foreign funds
The PIB also rejected allegations that the FCRA framework is intended to curb civil society organisations.
According to official figures, around 16,200 organisations remained actively registered under FCRA during 2024–25, collectively receiving approximately ₹22,963 crore in foreign contributions. The government argued that these numbers demonstrate that the law regulates foreign funding rather than prohibiting it.
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FCRA not limited to religious organisations
Another clarification issued by the PIB addressed the perception that FCRA primarily targets NGOs or religious bodies.
The government noted that comparable foreign influence laws in several countries regulate a much wider range of entities, including lobbying firms, think tanks, universities, public relations firms and companies acting on behalf of foreign principals.
Background
The FCRA Amendment Bill, 2026, was introduced in the Lok Sabha on March 25 but could not be taken up for passage following disruptions in the House. The legislation is expected to be considered during the ongoing Monsoon Session of Parliament.
Earlier this month, Union Home Minister Amit Shah met a delegation of the Catholic Bishops' Conference of India (CBCI), which had raised concerns over the proposed FCRA Amendment Bill, 2026, and the recently notified FCRA Amendment Rules, 2026. Following the meeting, CBCI officials stated that the Home Minister assured the delegation that the proposed legislation was not directed against Christian NGOs and acknowledged the Church's contribution to the fields of education and healthcare. The FCRA Rules, 2026, require organisations receiving foreign contributions to clearly specify the nature of their activities under the permitted categories and the geographical areas in which they operate.
The Centre maintains that the objective of the amendments is to improve transparency, accountability and oversight in the utilisation of foreign contributions while ensuring that legal safeguards, including judicial remedies, remain available.