FCRA Compliance for NGOs in India 2025: What You Must Know

The Foreign Contribution Regulation Act (FCRA) governs how Indian NGOs can receive and utilise foreign donations. In 2025, FCRA compliance remains one of the most misunderstood — and most penalised — areas of NGO regulation in India. This guide covers everything your organisation needs to know.

Do you need FCRA registration?

Your NGO needs FCRA registration if it receives or plans to receive any donation from a foreign source — including NRI donors, foreign foundations, international CSR funds, or grants from overseas development organisations. FCRA applies to trusts, societies, and Section 8 companies alike.

The SBI Main Branch rule (2022 amendment)

Since January 2022, all FCRA-registered NGOs must maintain their designated FCRA account at SBI's New Delhi Main Branch (NDMB). This is mandatory for all organisations, regardless of their operating location. Secondary accounts at other banks are permitted but only for utilisation, not receipt.

Annual compliance requirements

• FC-4 Annual Return: Filed online within 9 months of financial year end (by December 31)
• Quarterly activity reports if foreign contribution received exceeds Rs. 1 crore
• Utilisation Certificate within 30 days of project completion for grants
• Separate audited accounts for FCRA funds maintained by a CA
• Details of foreign contribution received and utilised published on your website

Common FCRA violations that lead to cancellations

• Transfer of FCRA funds to non-FCRA registered sub-grantees
• Using FCRA funds for activities not specified in registration
• Not maintaining separate books of accounts for FCRA receipts
• Missing FC-4 annual return deadline
• Changing bank accounts without prior MHA approval
• Using FCRA funds for political activities (strict prohibition)