UPSC Prelims Practice Questions — Constitutional faultlines in FCRA Bill
Q1. Consider the following statements regarding the evolution of India's foreign contribution law:
1. The Foreign Contribution (Regulation) Act, 2010 repealed and replaced the Act of 1976 and was brought into force with effect from 1 May 2011.
2. The Foreign Contribution (Regulation) Amendment Act, 2020 raised the ceiling on administrative expenses from 20 per cent to 50 per cent of the foreign contribution received, and permitted transfer of foreign contribution to other registered persons.
3. The Foreign Contribution (Regulation) Amendment Bill, 2026 reduces the maximum term of imprisonment for violations under the Act from five years to one year.
Which of the statements given above is/are correct?
- The Foreign Contribution (Regulation) Act, 2010 repealed and replaced the Act of 1976 and was brought into force with effect from 1 May 2011.
- The Foreign Contribution (Regulation) Amendment Act, 2020 raised the ceiling on administrative expenses from 20 per cent to 50 per cent of the foreign contribution received, and permitted transfer of foreign contribution to other registered persons.
- The Foreign Contribution (Regulation) Amendment Bill, 2026 reduces the maximum term of imprisonment for violations under the Act from five years to one year.
- A. 1 and 2 only
- B. 2 and 3 only
- C. 1 and 3 only
- D. 1, 2 and 3
Q2. Which one of the following administers the Foreign Contribution (Regulation) Act and processes the registration and renewal of FCRA certificates?
- A. The Foreign Exchange Department of the Reserve Bank of India, acting under the Foreign Exchange Management Act, 1999
- B. The Directorate of Enforcement in the Department of Revenue, Ministry of Finance, Government of India
- C. The Foreigners-II Division of the Ministry of Home Affairs, Government of India
- D. The Foreign Investment Facilitation Portal of the Department for Promotion of Industry and Internal Trade
Q3. Under the Foreign Contribution (Regulation) Amendment Bill, 2026, an asset such as a school or hospital created out of foreign contribution, which has vested permanently after the FCRA certificate ceases, is to be applied to public purposes principally by which one of the following routes?
- A. By making it over to the Official Liquidator attached to the High Court of the State concerned, for winding up and rateable distribution
- B. By vesting it in the Custodian of Enemy Property for India, which administers such properties under the Ministry of Home Affairs
- C. By entrusting it to the District Collector, who is required to auction it and remit the proceeds to the State's Consolidated Fund
- D. By transferring it to the government department concerned with that activity, a school going to the Education Department and a hospital to the Health Department
Q4. Under the Foreign Contribution (Regulation) Amendment Bill, 2026, after the revision stage, an order of the Designated Authority is appealable to which one of the following forums?
- A. The High Court having territorial jurisdiction over the association concerned, by way of a statutory appeal
- B. The District Judge having jurisdiction, by way of a further judicial appeal against the order
- C. The Court of Session having jurisdiction, in the manner provided for appeals against orders of forfeiture
- D. The Union Home Secretary, as the departmental appellate authority designated by the central government
Q5. Which one of the following statements correctly describes the parliamentary course of the Foreign Contribution (Regulation) Amendment Bill, 2026?
- A. It was first introduced in the Rajya Sabha and was thereafter transmitted to the Lok Sabha, which passed it without any amendment
- B. It was passed by both Houses of Parliament in the very session in which it was introduced, without any committee scrutiny at all
- C. It was first introduced in the Lok Sabha in March 2026, and was subsequently referred to a joint committee of both Houses in August 2026
- D. It was referred to the Department-related Standing Committee on Home Affairs immediately on introduction, that being the invariable rule for all Home Ministry Bills
Q6. In the context of the scrutiny of the Foreign Contribution (Regulation) Amendment Bill, 2026, a 'Joint Committee of Parliament' constituted for a Bill is best described as which one of the following?
- A. A standing, department-related committee whose members are drawn only from the Lok Sabha, and which examines every Bill pertaining to the ministry allotted to it
- B. An ad hoc committee set up for that particular Bill, with members of both Houses nominated by the Speaker and the Chairman respectively, which ceases to exist once it reports
- C. A committee of members of both Houses constituted by the President on the advice of the Council of Ministers, to examine Bills that involve expenditure from the Consolidated Fund
- D. A select committee of the House in which the Bill originated, whose members are elected by that House and whose recommendations are binding on the government
Q7. Reasonable restrictions on the right of citizens to form associations or unions may be imposed by the State under which one of the following clauses of Article 19 of the Constitution?
- A. Clause (2)
- B. Clause (3)
- C. Clause (4)
- D. Clause (5)
Q8. Which one of the following statements reproduces the guarantee contained in Article 300A of the Constitution of India?
- A. No person shall be deprived of his property save by authority of law
- B. All citizens shall have the right to acquire, hold and dispose of property, subject to reasonable restrictions
- C. No person shall be deprived of his life or personal liberty except according to procedure established by law
- D. The State shall not deny to any person equality before the law or the equal protection of the laws
Q9. Under the Foreign Contribution (Regulation) Act as it stands after the 2020 amendment, what is the maximum proportion of the foreign contribution received in a financial year that may be defrayed towards administrative expenses?
- A. 10 per cent
- B. 20 per cent
- C. 25 per cent
- D. 50 per cent
Q10. Which one of the following statements about the bank account in which foreign contribution must be received under the FCRA is correct?
- A. It must be opened in any one branch of the State Bank of India chosen by the recipient, and all utilisation of the funds must take place exclusively from that branch
- B. It must be opened in a scheduled bank designated by the State Government in which the association is registered, and no other bank account may be operated by it
- C. It must be opened with the Central Accounts Section of the Reserve Bank of India, into which every foreign contribution is credited before it is released to recipients
- D. It must be an 'FCRA Account' in the New Delhi branch of the State Bank of India notified by the Centre, while another account may be kept for utilising the funds
Q11. Consider the following statements regarding registration under the Foreign Contribution (Regulation) Act:
1. A certificate of registration granted or renewed is valid for five years, and an application for its renewal has to be made within six months before the date of expiry.
2. Pending consideration of cancellation, the central government may suspend a certificate for a period not exceeding 180 days, which after the 2020 amendment may be extended by a further period not exceeding 180 days.
3. An association whose certificate has been cancelled becomes eligible to apply afresh for registration or prior permission after one year from the date of cancellation.
Which of the statements given above is/are correct?
- A certificate of registration granted or renewed is valid for five years, and an application for its renewal has to be made within six months before the date of expiry.
- Pending consideration of cancellation, the central government may suspend a certificate for a period not exceeding 180 days, which after the 2020 amendment may be extended by a further period not exceeding 180 days.
- An association whose certificate has been cancelled becomes eligible to apply afresh for registration or prior permission after one year from the date of cancellation.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q12. Amid Opposition protests, the Lok Sabha referred the Foreign Contribution (Regulation) Amendment Bill, 2026 to a 31-member joint committee of Parliament. How many of these members are drawn from the Lok Sabha?