UPSC Prelims Practice Questions — Kerala HC sets aside Centre’s order refusing FCRA renewal for two NGOs

Q1. Which one of the following correctly states the enactment, commencement and administering authority of the law currently regulating the acceptance and utilisation of foreign contribution in India?

  • A. Enacted in 2010 and brought into force on 1 May 2011, it is administered by the Ministry of External Affairs.
  • B. Enacted in 2010 and brought into force on 1 May 2011, it is administered by the Ministry of Home Affairs.
  • C. Enacted in 2010 and brought into force on 22 June 2026, it is administered by the Ministry of Home Affairs.
  • D. Enacted in 1976 and brought into force on 1 May 2011, it is administered by the Ministry of Corporate Affairs.

Q2. Consider the following statements regarding the categories of persons barred from accepting foreign contribution under the Foreign Contribution (Regulation) Act, 2010: 1. Judges and government servants fall within the prohibited category. 2. Candidates for election and members of any legislature fall within the prohibited category. 3. Every non-governmental organisation registered as a society or trust falls within the prohibited category, without exception. 4. Organisations of a political nature, and associations or companies engaged in the production and broadcast of audio or audio-visual news or current affairs programmes, fall within the prohibited category. Which of the above is/are NOT correct?

  1. Judges and government servants fall within the prohibited category.
  2. Candidates for election and members of any legislature fall within the prohibited category.
  3. Every non-governmental organisation registered as a society or trust falls within the prohibited category, without exception.
  4. Organisations of a political nature, and associations or companies engaged in the production and broadcast of audio or audio-visual news or current affairs programmes, fall within the prohibited category.
  • A. 1 and 3
  • B. 3 only
  • C. 2 and 4
  • D. 1, 3 and 4

Q3. The repealed Foreign Contribution (Regulation) Act, 1976 placed no outer limit on how long a registration certificate remained valid; the 2010 Act changed this. For how many years is a certificate now valid, and how long before its expiry must renewal be sought?

  • A. Three years; six months
  • B. Ten years; twelve months
  • C. Five years; six months
  • D. Five years; three months

Q4. Consider the following features of the foreign contribution regulatory regime: 1. A fixed five-year validity for registration certificates. 2. Express statutory provisions for suspension as well as cancellation of registration for violations. 3. Placing organisations of a political nature and broadcasters of audio or audio-visual news programmes in the prohibited category. 4. A ceiling of 20 per cent of the foreign contribution received in a year on administrative expenditure. Which of the above are correctly identified as innovations of the Foreign Contribution (Regulation) Act, 2010 that were absent from the repealed Act of 1976?

  1. A fixed five-year validity for registration certificates.
  2. Express statutory provisions for suspension as well as cancellation of registration for violations.
  3. Placing organisations of a political nature and broadcasters of audio or audio-visual news programmes in the prohibited category.
  4. A ceiling of 20 per cent of the foreign contribution received in a year on administrative expenditure.
  • A. 1 and 2 only
  • B. 2 and 4 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q5. The requirement that foreign contribution be received only into an account designated as an 'FCRA account' with a specified State Bank of India branch in New Delhi was introduced by which one of the following?

  • A. The Foreign Contribution (Regulation) Act, 2010, as originally enacted and brought into force in 2011
  • B. The Foreign Contribution (Regulation) Amendment Act, 2020, piloted by the Ministry of Home Affairs
  • C. The Foreign Contribution (Regulation) Amendment Rules, 2026, notified by the Ministry of Home Affairs
  • D. The repealed Foreign Contribution (Regulation) Act, 1976, as amended before its repeal

Q6. What proportion of the foreign contribution received in a financial year may currently be defrayed on administrative expenses, and what earlier ceiling did that figure replace?

  • A. 10 per cent, replacing an earlier ceiling of 50 per cent
  • B. 50 per cent, replacing an earlier ceiling of 20 per cent
  • C. 20 per cent, replacing an earlier ceiling of 30 per cent
  • D. 20 per cent, replacing an earlier ceiling of 50 per cent

Q7. Pending consideration of the question of cancelling a certificate, the Central Government may suspend it. Under which provision of the Foreign Contribution (Regulation) Act, 2010, and for what period, may such suspension be ordered?

  • A. Section 14 — for 180 days, extendable by a further period not exceeding 180 days
  • B. Section 16 — for 180 days, extendable by a further period not exceeding 90 days
  • C. Section 13 — for 180 days, extendable by a further period not exceeding 180 days
  • D. Section 13 — for 90 days, extendable by a further period not exceeding 90 days

Q8. An association that does not hold a certificate of registration under the FCRA may nonetheless lawfully accept foreign contribution by obtaining a 'prior permission'. Which one of the following correctly describes the scope of such a permission?

  • A. It runs for five years and is renewable on the same terms as a certificate of registration
  • B. It is confined to the specific purpose, and the specific amount of foreign contribution, for which it is granted
  • C. It covers any purpose but only contributions originating from a single named foreign donor country
  • D. It runs for one financial year and lapses upon the filing of the annual audited return

Q9. A right of appeal to the Court of the District Judge within ninety days, and reduction of the maximum term of imprisonment for foreign-contribution offences from five years to one year, are elements of which of the following?

  • A. The Foreign Contribution (Regulation) Amendment Bill, 2026, introduced in the Lok Sabha by the Ministry of Home Affairs
  • B. The Foreign Contribution (Regulation) Amendment Act, 2020, brought before Parliament by the Ministry of Home Affairs
  • C. The Foreign Contribution (Regulation) Act, 2010 as originally enacted, administered by the Ministry of Home Affairs
  • D. The Foreign Contribution (Regulation) Amendment Bill, 2026, introduced in the Lok Sabha by the Ministry of Finance