Polity · 11 Aug 2026

FCRA Amendment Bill 2026 asset vesting

Consider the following statements about the Foreign Contribution (Regulation) Act, 1976 (FCRA) and the FCRA Amendment Bill, 2026:

  1. The FCRA was substantially overhauled in 2010 and further amended in 2020 to mandate a single designated bank branch for receiving foreign contributions.
  2. Under the existing (pre-2026 Bill) FCRA framework, an NGO's assets could be vested in the state solely on the ground of non-renewal of its FCRA registration, without any finding of fraud.
  3. The 2026 Amendment Bill, as introduced, proposes a Designated Authority empowered to vest NGO assets upon "deemed cessation" of registration.
AOnly one
BOnly two
CAll three
DNone
About this question

Why in news

With the Monsoon Session set to conclude August 13, the government's window to pass the FCRA Amendment Bill is narrowing, prompting a Congress whip, a multi-platform appeal from Christian organisations and reported government reconsideration of routing the Bill through a Joint Parliamentary Committee.

Why for UPSC

A well-prepared aspirant should be able to distinguish what the existing FCRA framework already permits from what a new Bill proposes to add - a distinction UPSC regularly tests when a law is being amended mid-controversy.

Prelims summary

FCRA, 1976 was overhauled in 2010 and amended in 2020 (single receiving bank). The 2026 Bill newly proposes asset vesting on mere "deemed cessation" of registration, not proven fraud.

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