Glossary
FCRA
The Ministry of Home Affairs licence an NGO needs to receive money from abroad.
The Foreign Contribution (Regulation) Act, 2010 ("FCRA") is administered by the Ministry of Home Affairs. Any Indian entity that receives money, articles or securities from a foreign source — a foreign foundation, a foreign government, a foreign company, an individual of foreign nationality — must hold a valid FCRA registration, or a specific prior-permission approval for that single grant, or the transaction is illegal.
The framework was amended in 2020: since then, FCRA funds must be received into an FCRA-designated account with State Bank of India, New Delhi branch; downstream transfers to sub-grantees are prohibited; and administrative expenses out of FCRA funds are capped at 20%. Registrations run for five years and must be renewed six months before expiry.
FCRA is the single most common reason a foreign grant lists an Indian NGO as ineligible — without a live registration, the funder legally cannot transfer the money.