New Guidelines Issued for Foreign Fund Utilization under FCRA

The Central government has revised regulations under the Foreign Contribution Regulation Act (FCRA), stipulating that foreign funds received with prior permission must be spent within four years. The Ministry of Home Affairs announced that prior permissions are valid for specific projects, with a receipt validity of three years.

The Indian government, through a recent notification, has mandated that any foreign funding received under the Foreign Contribution Regulation Act (FCRA) must be utilized within four years. Announced by the Ministry of Home Affairs on Monday, this regulation affects funds obtained under the prior permission category.

According to the notification, entities registered under the FCRA can only receive foreign contributions after obtaining prior permission, specifically for predetermined activities and from designated sources. This move aims to streamline and ensure accountability in foreign funding use.

The government, exercising powers under Section 46 of the FCRA, specified that while the validity to receive contributions remains three years, the utilization period extends to four years from the approval date. Any deviation from this timeline will be deemed a violation of the act.

(With inputs from agencies.)