UPSC Prelims Practice Questions — Troubling bill

Q1. Under the Foreign Contribution (Regulation) Amendment Bill, 2026, in how many distinct circumstances does an organisation's certificate cease to have effect, thereby triggering vesting of its foreign-contribution assets in the Designated Authority?

  • A. Two
  • B. Three
  • C. Four
  • D. Five

Q2. With reference to the powers proposed for the Designated Authority under the Foreign Contribution (Regulation) Amendment Bill, 2026, consider the following: 1. It may use assets permanently vested in it for public purposes. 2. It may transfer such assets to a Ministry, Department or agency of the Government. 3. Proceeds realised from the disposal of such assets are to be credited to the Contingency Fund of India. 4. Assets that are places of worship are to be dealt with in a manner that maintains their religious character. Which of the above is/are correctly identified as provisions of the Bill?

  1. It may use assets permanently vested in it for public purposes.
  2. It may transfer such assets to a Ministry, Department or agency of the Government.
  3. Proceeds realised from the disposal of such assets are to be credited to the Contingency Fund of India.
  4. Assets that are places of worship are to be dealt with in a manner that maintains their religious character.
  • A. 1 and 3 only
  • B. 2, 3 and 4 only
  • C. 1, 2 and 4 only
  • D. 1, 2, 3 and 4

Q3. Consider the following in relation to the changes made to the Foreign Contribution (Regulation) Act, 2010 by its 2020 amendment: 1. The ceiling on utilisation of foreign contribution for administrative expenses was brought down from 50% to 20%. 2. Foreign contribution must be received only in an account designated as an 'FCRA account' in a notified branch of the State Bank of India, New Delhi. 3. The Aadhaar number of all office bearers, directors or key functionaries must be furnished as an identification document for prior permission, registration or renewal. 4. Registered persons were permitted to transfer foreign contribution to other persons holding a valid certificate under the Act. Which of the statements given above is/are correct?

  1. The ceiling on utilisation of foreign contribution for administrative expenses was brought down from 50% to 20%.
  2. Foreign contribution must be received only in an account designated as an 'FCRA account' in a notified branch of the State Bank of India, New Delhi.
  3. The Aadhaar number of all office bearers, directors or key functionaries must be furnished as an identification document for prior permission, registration or renewal.
  4. Registered persons were permitted to transfer foreign contribution to other persons holding a valid certificate under the Act.
  • A. 1, 2 and 3 only
  • B. 1 and 4 only
  • C. 2, 3 and 4 only
  • D. 1, 2, 3 and 4

Q4. As the law stands after the 2020 amendment to the Foreign Contribution (Regulation) Act, 2010, the restriction placed on the 'transfer' of foreign contribution means which one of the following?

  • A. Transfer is permitted, but only to a person who himself holds a valid certificate of registration or prior permission under the Act
  • B. Transfer is permitted up to twenty per cent of the foreign contribution received by the person in a financial year
  • C. No person registered under the Act may transfer foreign contribution to any other person, whether or not that person is registered
  • D. Transfer is permitted to any person in India with the prior written approval of the Central Government in each case

Q5. The Foreign Contribution (Regulation) Act, 2010 is administered by which one of the following?

  • A. The Ministry of Home Affairs, through its Foreigners Division
  • B. The Ministry of External Affairs, through its Economic Diplomacy Division
  • C. The Department of Economic Affairs under the Ministry of Finance
  • D. The Ministry of Corporate Affairs, through the Registrar of Companies

Q6. Of the 31 members of the joint committee of Parliament to which the Foreign Contribution (Regulation) Amendment Bill, 2026 was referred in August 2026, how many are drawn from the Lok Sabha?

  • A. 15
  • B. 20
  • C. 21
  • D. 24

Q7. The ten members from the Council of States on the joint committee examining the Foreign Contribution (Regulation) Amendment Bill, 2026 are to be nominated by which one of the following?

  • A. The Speaker of the House of the People
  • B. The Chairman of the Council of States
  • C. The Deputy Chairman of the Council of States
  • D. The Leader of the House in the Council of States

Q8. Consider the following in relation to Joint Parliamentary Committees: 1. Such a committee is constituted by a motion adopted in one House of Parliament and concurred in by the other House. 2. It is an ad hoc body which becomes functus officio immediately after it presents its report to the House. 3. Its recommendations carry persuasive value and it cannot compel the Government to act upon them. 4. Joint Parliamentary Committees are enumerated by name among the committees listed in the Rules of Procedure of the Lok Sabha. Which of the above is/are correctly identified?

  1. Such a committee is constituted by a motion adopted in one House of Parliament and concurred in by the other House.
  2. It is an ad hoc body which becomes functus officio immediately after it presents its report to the House.
  3. Its recommendations carry persuasive value and it cannot compel the Government to act upon them.
  4. Joint Parliamentary Committees are enumerated by name among the committees listed in the Rules of Procedure of the Lok Sabha.
  • A. 1 and 4 only
  • B. 2 and 3 only
  • C. 1, 2 and 3 only
  • D. 1, 2, 3 and 4

Q9. Consider the following statements comparing Parliamentary Committees in India: 1. The Public Accounts Committee is constituted afresh every year, whereas a Joint Parliamentary Committee is set up for a specific object and a specific duration. 2. A Minister cannot be a member of the Public Accounts Committee, and representation of the Rajya Sabha on it cannot exceed seven members. 3. When Department-related Standing Committees were first set up in 1993, there were seventeen of them, each consisting of 15 members from the Lok Sabha and 30 from the Rajya Sabha. Which of the statements given above is/are correct?

  1. The Public Accounts Committee is constituted afresh every year, whereas a Joint Parliamentary Committee is set up for a specific object and a specific duration.
  2. A Minister cannot be a member of the Public Accounts Committee, and representation of the Rajya Sabha on it cannot exceed seven members.
  3. When Department-related Standing Committees were first set up in 1993, there were seventeen of them, each consisting of 15 members from the Lok Sabha and 30 from the Rajya Sabha.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q10. With reference to reactions to the Foreign Contribution (Regulation) Amendment Bill, 2026, consider the following: 1. The Catholic Bishops' Conference of India urged the Union Home Minister to withdraw the Bill and the notified rules and to have them redrafted after wider consultation with stakeholders. 2. The Chief Minister of Nagaland welcomed the amendments and pressed for their early passage without reference to any committee. 3. The Government of Mizoram and the State's apex church bodies decided to jointly submit a memorandum to the Centre recommending changes to the Bill. 4. The Chief Minister of Tamil Nadu described the Bill as 'draconian' and demanded that it be dropped. Which of the above is/are NOT correct?

  1. The Catholic Bishops' Conference of India urged the Union Home Minister to withdraw the Bill and the notified rules and to have them redrafted after wider consultation with stakeholders.
  2. The Chief Minister of Nagaland welcomed the amendments and pressed for their early passage without reference to any committee.
  3. The Government of Mizoram and the State's apex church bodies decided to jointly submit a memorandum to the Centre recommending changes to the Bill.
  4. The Chief Minister of Tamil Nadu described the Bill as 'draconian' and demanded that it be dropped.
  • A. 1 only
  • B. 2 only
  • C. 2 and 4 only
  • D. 3 and 4 only

Q11. Foreign exchange transactions in general, as distinct from foreign contribution received by associations, are governed by the Foreign Exchange Management Act, 1999, whose principal administering authority is:

  • A. The Reserve Bank of India, acting within the framework laid down by the Central Government
  • B. The Directorate of Enforcement, which issues regulations governing current and capital account transactions
  • C. The Ministry of Home Affairs, which is also the administering ministry for the FCRA, 2010
  • D. The Securities and Exchange Board of India, in respect of all inbound and outbound remittances