A new law that was signed on September 28, 2020 will greatly tighten and restrict the existing Foreign Contribution Regulation Act (FCRA). FCRA is the cornerstone law that regulates how nonprofits in India can receive foreign funding, including from U.S.-based foundations and corporations.
The Ministry of Home Affairs released guidance indicating that FCRA-Registered nonprofits have until March 31, 2021 to open the new designated FCRA bank account. Nonprofits do not need to visit the State Bank in Delhi to open this account. Funders may consider resuming grantmaking to Indian nonprofits in this transition period.