UPSC Prelims Practice Questions — What are the concerns over the FCRA Bill?

Q1. With reference to the Designated Authority proposed under the Foreign Contribution (Regulation) Amendment Bill, 2026, consider the following statements. Which of the above is/are NOT correct?

  1. It is notified by the Central Government to take over foreign contribution and assets on cancellation of an entity's registration.
  2. Where permanently vested assets are disposed of by sale, the proceeds are credited to the Consolidated Fund of India.
  3. An order of the Designated Authority may be appealed before the High Court within 30 days.
  4. Assets that vest permanently in it must be applied for public purposes.
  • A. 1 and 2
  • B. 2 and 4
  • C. 3 only
  • D. 1 and 4

Q2. Under the Foreign Contribution (Regulation) Amendment Bill, 2026, which of the following are correctly identified as functions or powers of the Designated Authority?

  1. Taking over and provisionally vesting an entity's assets upon cancellation of its registration.
  2. Returning unutilised foreign contribution upon renewal or restoration of registration.
  3. Prosecuting offenders under the Act without any prior Central Government approval.
  4. Disposing of permanently vested assets and crediting the sale proceeds to the Consolidated Fund of India.
  • A. 1, 2 and 4
  • B. 1 and 3
  • C. 2, 3 and 4
  • D. 1, 2 and 3

Q3. Consider the following statements comparing the FCRA (Amendment) Act, 2020 with the Foreign Contribution (Regulation) Amendment Bill, 2026. Which of the statements given above is/are correct?

  1. While the 2020 amendment mandated that foreign contribution be received only in an SBI, New Delhi Main Branch account, the 2026 Bill introduces a Designated Authority empowered to take over an entity's assets.
  2. The 2026 Bill reduces the maximum imprisonment for an offence from five years to one year.
  3. The 2020 amendment expressly permitted sub-granting of foreign contribution to other FCRA-registered organisations.
  • A. 1 only
  • B. 1 and 2 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q4. Under the Foreign Contribution (Regulation) Amendment Bill, 2026, how many circumstances relating to an entity's registration certificate trigger the provisional vesting of its assets (including assets created partly from foreign contribution) in the Designated Authority?

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

Q5. With reference to the treatment of mixed-fund assets under the Foreign Contribution (Regulation) Amendment Bill, 2026, which of the following are correctly identified as features of the asset-vesting scheme?

  1. Assets created partly from foreign contribution can be vested in the Designated Authority.
  2. Assets vest permanently if the entity fails to obtain fresh registration within the prescribed period.
  3. Provisional vesting requires the prior sanction of the jurisdictional High Court.
  4. Unutilised contribution and provisionally vested assets are returned upon restoration of registration.
  • A. 1 and 3
  • B. 1, 2 and 4
  • C. 2, 3 and 4
  • D. 1 and 2

Q6. The Kerala government has opposed the tightening of restrictions on 'sub-granting' under FCRA. In this context, 'sub-granting' of foreign contribution refers to:

  • A. The onward transfer of received foreign contribution by an FCRA recipient to another person or organisation.
  • B. The receipt of foreign contribution directly from a foreign source without any registration.
  • C. The sharing of administrative expenses between two registered NGOs.
  • D. The crediting of unutilised foreign contribution to the Consolidated Fund of India.

Q7. The 2026 amendments publicly opposed by the Kerala government seek to amend a parent statute that is administered by which Union ministry?

  • A. Ministry of Home Affairs
  • B. Ministry of Corporate Affairs
  • C. Ministry of External Affairs
  • D. Ministry of Finance

Q8. Under the FCRA framework administered by the Ministry of Home Affairs, a certificate of registration granted to an association is valid for how many years, after which it must be renewed?

  • A. Three
  • B. Five
  • C. Seven
  • D. Ten

Q9. With reference to the legislative journey of the Foreign Contribution (Regulation) Amendment Bill, 2026, consider the following statements. Which of the above is/are NOT correct?

  1. It was introduced in the Lok Sabha on 25 March 2026.
  2. It seeks to amend the Foreign Contribution (Regulation) Act, 2010.
  3. Its discussion and passage were deferred amid Opposition protests during the Budget Session.
  4. It was passed by both Houses of Parliament and received Presidential assent in April 2026.
  • A. 1 only
  • B. 3 only
  • C. 4 only
  • D. 2 and 3

Q10. Under the Foreign Contribution (Regulation) Amendment Bill, 2026, a person aggrieved by an order of the Designated Authority may appeal to the District Judge within how many days?

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

Q11. Which of the following are correctly identified as categories that are prohibited from accepting foreign contribution under the FCRA?

  1. Candidates for election.
  2. Judges and government servants.
  3. Registered charitable trusts holding a valid FCRA certificate.
  4. Members of any legislature and political parties.
  • A. 1, 2 and 3
  • B. 1, 2 and 4
  • C. 2, 3 and 4
  • D. 1 and 4