The Foreign Contribution (Regulation) Act, 2010 (FCRA) regulates acceptance and utilisation of foreign contributions by individuals, associations, and companies in India. Administered by the Ministry of Home Affairs (MHA), it requires NGOs to register under FCRA to receive foreign funds. Registration must be renewed every five years. The 2020 amendment introduced key restrictions: prohibition on sub-granting, mandatory SBI New Delhi Main Branch account, and Aadhaar-linked registration. Over 20,000 FCRA registrations have been cancelled since 2011.

FCRA sits at the intersection of national security, civil society regulation, and foreign policy. The law's core logic is that foreign money, if unchecked, could influence political processes, religious conversions, or anti-national activities — hence the state's right to monitor and restrict its flow.

The 2020 Amendment tightened the framework considerably. NGOs can no longer sub-grant foreign funds to other organisations, which effectively cut off smaller grassroots groups that relied on larger NGOs as conduits. The requirement that all foreign contributions must be received exclusively through a designated SBI branch at New Delhi Main Branch centralises surveillance. Administrative expenses funded by foreign contribution were capped at 20% (reduced from 50%).

The Supreme Court in Noel Harper v. Union of India (2022) upheld the 2020 amendments as constitutionally valid, rejecting the argument that they violate Articles 14, 19(1)(c), or 21. The Court held that receiving foreign contributions is not a fundamental right.

Critics argue FCRA has been weaponised against dissenting voices — Amnesty International, Missionaries of Charity, and Greenpeace India all faced suspension or cancellation. The UN Special Rapporteurs have flagged FCRA as potentially inconsistent with international human rights standards. This tension between sovereignty and civil society freedom makes FCRA a rich topic for both UPSC and CLAT examiners.