New Four-Year Limit: The Ministry of Home Affairs (MHA) has changed its policy, limiting the validity of foreign funds received via prior permission to four years. Previously, funds could be used until fully spent.
Three-Year Receipt Window: Organizations now have three years from the approval date to receive the foreign funds.
Four-Year Utilization Window: They then have four years from the approval date to utilize those funds.
Retroactive Application: For existing approvals with project timelines exceeding three years, the four-year utilization limit begins from the date of the new MHA order (April 7, 2025), not the original approval date.
FCRA Violation: Failure to comply with these time limits will be considered a violation of the Foreign Contribution (Regulation) Act, 2010 (FCRA), leading to penalties.
Prior Permission Necessity: Organizations not fully registered under FCRA must obtain prior permission for specific projects and donors.
Eligibility Criteria: To receive funds through prior permission, NGOs must be registered under laws like the Societies Registration Act, Indian Trusts Act, or Companies Act and maintain a designated bank account. The Chief Functionary should not be a member of the donor organization and majority of governing body should also not be.
Extension Possible: MHA may grant extensions on a case-by-case basis, depending on the merits of each application.
