Last reviewed: 9 July 2026. Getting FCRA registration is only the start - keeping it means following a strict set of ongoing rules, and breaches can lead to suspension or cancellation. This guide covers the key compliances: the FC-4 annual return, the mandatory SBI account, the 20% administrative-expense cap, the ban on passing funds to other NGOs, and renewal.
Quick summary
The FC-4 annual return
Every FCRA holder files Form FC-4 online with the Ministry of Home Affairs by 31 December, reporting the foreign contributions received and used during the previous financial year, with audited accounts. A nil return is required even in a year with no foreign funds. Late or missed returns are a common reason for FCRA action.
The bank account rules
All foreign contribution must first be received in the designated FCRA account at SBI New Delhi Main Branch. You may keep a separate FCRA utilisation account at your own bank to spend from, but funds cannot enter through any other account.
The 20% administrative-expense cap
An FCRA holder cannot spend more than 20% of the foreign contribution utilised in a year on administrative expenses (salaries of management, office rent and similar), unless it takes the prior approval of the central government. This pushes more of the money towards actual programme work.
No sub-granting
Since the 2020 amendment, foreign contribution cannot be transferred to any other person or organisation - even one that also holds FCRA registration. A lead NGO can no longer sub-grant foreign funds to partner NGOs; each must receive its own foreign funding.
Renewal and the cost of default
Registration lasts five years and must be renewed by applying within the six months before it expires (Form FC-3C). Breaches - late FC-4, misuse of funds, using the wrong account, or exceeding the admin cap - can lead to suspension or cancellation of registration and freezing of accounts, so staying compliant is essential.
Official sources: FCRA Online portal (MHA) · MHA FAQs on FCRA (PDF)
Frequently asked questions
What is the FCRA annual return?
Form FC-4 is the annual return every FCRA holder must file online with the Ministry of Home Affairs, reporting the foreign contributions received and how they were used, along with audited accounts. It is due by 31 December for the previous financial year.
Do I have to file FC-4 even if I received no foreign funds?
Yes. A nil FC-4 return must be filed even in a year with no foreign contribution, as long as your FCRA registration is active.
What is the 20% administrative expenses cap?
Under the 2020 amendment, an FCRA holder cannot spend more than 20% of the foreign contribution utilised in a year on administrative expenses, unless it takes prior approval of the central government.
Can I pass foreign funds to another NGO?
No. Since the 2020 amendment, foreign contribution cannot be transferred or sub-granted to any other person or organisation, even if that other organisation also has FCRA registration.
When do I renew my FCRA registration?
Apply for renewal within the six months before your five-year registration expires. If it lapses, you cannot receive or use foreign funds until it is restored.
What happens if I do not comply?
Non-compliance - late FC-4, misuse of funds, breaching the SBI account or admin-cap rules - can lead to suspension or cancellation of registration and freezing of accounts, so compliance is critical.
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