UPSC Prelims Practice Questions — India brushes off foreign criticism over draft legislation

Q1. The administration of the Foreign Contribution (Regulation) Act — including online registration, prior permission and renewal services for associations — is handled by which one of the following?

  • A. The Department of Economic Affairs under the Ministry of Finance
  • B. The Financial Intelligence Unit-India under the Department of Revenue
  • C. The Foreigners Division under the Ministry of Home Affairs
  • D. The Development Partnership Administration under the Ministry of External Affairs

Q2. Under the Foreign Contribution (Regulation) Act, 2010, the expression 'prior permission' denotes which one of the following?

  • A. A clearance valid for a fixed term of five years that an association must obtain before it opens a designated bank account for foreign funds
  • B. A one-time clearance available to an association not holding FCRA registration, tied to a specified donor and a specified purpose
  • C. A clearance obtained from the Reserve Bank of India before an association converts receipts in foreign currency into rupees
  • D. An approval taken from the State Government concerned before foreign contribution already received is utilised within that State

Q3. The Foreign Contribution (Regulation) Amendment Act, 2020 bars the 'transfer' of foreign contribution by a recipient. This bar operates in which one of the following ways?

  • A. It bars transfer to any person not holding an FCRA certificate, while sub-granting to another FCRA-registered person continues to be permitted
  • B. It bars transfer of funds out of the designated FCRA account to any secondary utilisation account operated by the same recipient
  • C. It bars transfer of foreign contribution to any person situated outside the State or Union Territory named in the recipient's certificate
  • D. It bars transfer to any other person whatsoever, including a person that itself holds a valid FCRA certificate of registration

Q4. The Foreign Contribution (Regulation) Amendment Act, 2020 lowered the ceiling on the share of foreign contribution that a recipient may spend on administrative expenses. By how many percentage points was that ceiling lowered?

  • A. 10
  • B. 20
  • C. 30
  • D. 40

Q5. Consider the following statements regarding the Foreign Contribution (Regulation) Amendment Bill, 2026 as compared with the existing FCRA framework: 1. The Bill was introduced in the Lok Sabha in March 2026 and creates a Designated Authority to take over, manage and dispose of the assets of an organisation whose FCRA registration has been cancelled, surrendered or has ceased. 2. Where such an organisation obtains restoration of its registration within the prescribed period, the assets and the unutilised foreign contribution vested in the Designated Authority are returned to it. 3. Orders passed by the Designated Authority are declared final under the Bill and are expressly barred from being questioned before any court. Which of the statements given above is/are correct?

  1. The Bill was introduced in the Lok Sabha in March 2026 and creates a Designated Authority to take over, manage and dispose of the assets of an organisation whose FCRA registration has been cancelled, surrendered or has ceased.
  2. Where such an organisation obtains restoration of its registration within the prescribed period, the assets and the unutilised foreign contribution vested in the Designated Authority are returned to it.
  3. Orders passed by the Designated Authority are declared final under the Bill and are expressly barred from being questioned before any court.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q6. Under the Foreign Contribution (Regulation) Amendment Bill, 2026, within how many days of an order of the Designated Authority may that order be taken up in revision?

  • A. 30
  • B. 60
  • C. 90
  • D. 180

Q7. In rejecting foreign comment on the FCRA Amendment Bill in August 2026, the Government of India rested its response primarily on which one of the following grounds?

  • A. That comment on a pending Bill violates India's obligations under bilateral treaty commitments with the country concerned
  • B. That legislative matters concerning India are internal affairs, to be decided by Parliament alone
  • C. That the Bill had already been referred to a parliamentary committee and could not be commented upon while under examination
  • D. That regulation of non-profit organisations falls within the exclusive domain of the State Legislatures in India's federal scheme

Q8. With reference to the FCRA Amendment Bill, 2026, which one of the following correctly describes the division of ministerial responsibility?

  • A. The Ministry of External Affairs pilots the Bill in Parliament and also administers FCRA registration and renewal of associations
  • B. The Ministry of Finance pilots the Bill in Parliament, the Ministry of Home Affairs being confined to enforcement action against defaulting associations
  • C. The Ministry of Corporate Affairs pilots the Bill in Parliament, since associations receiving foreign contribution are registered as non-profit companies
  • D. The Ministry of Home Affairs pilots the Bill in Parliament, while the Ministry of External Affairs handles India's response to foreign comment on it