UPSC Prelims Practice Questions — Govt. clarifies on FCRA Bill’s designated authority clause

Q1. Under the Foreign Contribution (Regulation) Amendment Bill, 2026, an order passed by the Designated Authority is subject to revision and further judicial appeal before which one of the following?

  • A. The Central Government (Ministry of Home Affairs)
  • B. The High Court of the concerned State
  • C. The District Judge's court
  • D. A special Foreign Contribution Appellate Tribunal

Q2. Under the Foreign Contribution (Regulation) Act, 2010, as originally enacted, what was the maximum proportion of foreign contribution that a recipient could use to meet administrative expenses?

  • A. 50%
  • B. 20%
  • C. 25%
  • D. 75%

Q3. Consider the following statements regarding registration and foreign contribution under the Foreign Contribution (Regulation) Act, 2010: 1. An association must normally have been in existence for at least three years before applying for FCRA registration. 2. 'Foreign contribution' means the donation or transfer of any currency, security or article, beyond a specified value, by a foreign source. 3. Foreign contribution may be accepted without any certificate of registration provided the recipient obtains prior permission only after the funds are received. Which of the statements given above is/are correct?

  1. An association must normally have been in existence for at least three years before applying for FCRA registration.
  2. 'Foreign contribution' means the donation or transfer of any currency, security or article, beyond a specified value, by a foreign source.
  3. Foreign contribution may be accepted without any certificate of registration provided the recipient obtains prior permission only after the funds are received.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q4. The Foreign Contribution (Regulation) Amendment Act, 2020 capped the proportion of annual foreign contribution that may be spent on administrative expenses at what level?

  • A. 15%
  • B. 20%
  • C. 25%
  • D. 30%

Q5. Under the Foreign Contribution (Regulation) Amendment Act, 2020, the term 'FCRA account' refers to:

  • A. an account in any nationalised bank chosen by the organisation for receiving foreign contribution and reporting to the Ministry
  • B. an Aadhaar-linked personal account of an office bearer used to certify receipt of foreign contribution
  • C. an account designated as 'FCRA account' in the State Bank of India, New Delhi main branch, into which foreign contribution must first be received
  • D. an account in any State Bank of India branch, made mandatory by the original FCRA, 2010, for foreign contribution

Q6. The Foreign Contribution (Regulation) Amendment Bill, 2026 was introduced in the Lok Sabha by the Minister of State in which one of the following ministries?

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

Q7. After its passage was deferred earlier in 2026 amid Opposition protests, the Foreign Contribution (Regulation) Amendment Bill, 2026 has been re-listed for passage in which session of Parliament?

  • A. Monsoon Session 2026
  • B. Winter Session 2026
  • C. Budget Session 2026
  • D. Special Session 2026

Q8. Under the Foreign Contribution (Regulation) Amendment Bill, 2026, what does the 'provisional' nature of the vesting of assets in the Designated Authority mean?

  • A. Assets are permanently credited to the Consolidated Fund of India as soon as the registration is cancelled by the Ministry
  • B. Assets vest temporarily and are fully restored to the organisation if its registration is renewed or restored within the prescribed period
  • C. Assets are held only until a court confirms the cancellation order, after which they automatically revert to the organisation
  • D. Only movable assets vest temporarily, while immovable places of worship are wholly exempt from vesting

Q9. Consider the following, as affirmed in PIB's clarification on the Foreign Contribution (Regulation) Amendment Bill, 2026: 1. The religious character of a place of worship must be preserved; the Designated Authority cannot convert, repurpose or secularise it. 2. Upon permanent vesting, assets are applied to public purposes by transfer to the relevant government department — for instance, schools to the Education Department and hospitals to the Health Department. 3. The Bill's provisions apply uniformly to all organisations regardless of religion, community or ideology. 4. Cancellation of registration automatically triggers seizure of all assets of the organisation, including those created from domestic donations. Which of the above is/are correctly identified as a clarification made by PIB?

  1. The religious character of a place of worship must be preserved; the Designated Authority cannot convert, repurpose or secularise it.
  2. Upon permanent vesting, assets are applied to public purposes by transfer to the relevant government department — for instance, schools to the Education Department and hospitals to the Health Department.
  3. The Bill's provisions apply uniformly to all organisations regardless of religion, community or ideology.
  4. Cancellation of registration automatically triggers seizure of all assets of the organisation, including those created from domestic donations.
  • A. 1 and 4
  • B. 1, 2 and 3
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q10. Consider the following statements about positions taken on the Foreign Contribution (Regulation) Amendment Bill, 2026: 1. Kerala Chief Minister Pinarayi Vijayan argued that the existing FCRA, 2010 is sufficient to address actions against public interest. 2. Pinarayi Vijayan warned that failure to renew registration within the prescribed time could lead to confiscation of assets even for minor technical lapses. 3. Congress MP Manish Tewari opposed the Bill as involving excessive delegation of essential legislative functions. 4. Parliamentary Affairs Minister Kiren Rijiju opposed the Bill, describing it as a threat aimed against minority religious institutions. Which of the above is/are NOT correctly matched?

  1. Kerala Chief Minister Pinarayi Vijayan argued that the existing FCRA, 2010 is sufficient to address actions against public interest.
  2. Pinarayi Vijayan warned that failure to renew registration within the prescribed time could lead to confiscation of assets even for minor technical lapses.
  3. Congress MP Manish Tewari opposed the Bill as involving excessive delegation of essential legislative functions.
  4. Parliamentary Affairs Minister Kiren Rijiju opposed the Bill, describing it as a threat aimed against minority religious institutions.
  • A. 1 and 3
  • B. 2 only
  • C. 4 only
  • D. 1, 2 and 3

Q11. To be eligible for registration under the Foreign Contribution (Regulation) Act, an association must ordinarily already be registered under a specified law. Which one of the following is such a qualifying registration?

  • A. The Societies Registration Act, 1860
  • B. The Foreign Exchange Management Act, 1999
  • C. The Indian Partnership Act, 1932
  • D. The Co-operative Societies Act, 1912