Polity & Governance
Syro-Malabar Church urges Centre to reconsider FCRA amendments amid funding concerns
What happened
The Syro-Malabar Catholic Church in Kerala has called on the Union government to revisit proposed amendments to the Foreign Contribution (Regulation) Act (FCRA), citing potential disruptions to its charitable and social welfare activities funded by foreign donations.
Key facts
The Syro-Malabar Church issued a statement on August 11, 2026, urging the Union government to reconsider amendments to the FCRA Bill.
The Church’s concerns include potential restrictions on foreign funding for its charitable and educational programs.
The proposed amendments aim to enhance transparency in foreign contributions, though critics argue they may stifle operational flexibility.
The FCRA currently requires NGOs and religious institutions to register and renew licenses annually for foreign funding.
The Church operates over 1,500 institutions, including hospitals and schools, many reliant on foreign donations.
Context
- The Foreign Contribution (Regulation) Act (FCRA), enacted in 1976, governs the acceptance and utilization of foreign contributions by individuals, associations, and companies in India.
- The Act was amended in 2020 to tighten compliance, including mandatory opening of FCRA accounts in State Bank of India (SBI) and capping administrative expenses at 20% of total foreign contributions.
- The Syro-Malabar Church, one of India’s largest Catholic denominations, operates numerous hospitals, schools, and social service initiatives funded partly by foreign donations.
Why it matters
- The FCRA regulates foreign funding for NGOs and religious institutions, impacting social and religious organizations' ability to operate.
- The Church’s stance highlights concerns over financial restrictions that could hinder welfare programs in Kerala, a state with significant non-profit activity.
- The issue reflects broader debates on regulatory oversight versus operational autonomy for faith-based organizations.