Foreign Contribution (Regulation) Amendment Bill 2026
Syllabus: GS2/ Polity and Governance
Context
- The union government introduced the Foreign Contribution (Regulation) Amendment Bill, 2026 in the Lok Sabha.
Foreign Contribution Regulation Act (FCRA), 2010
- FCRA aims to regulate the acceptance and utilization of foreign contributions to prohibit activities detrimental to the national interest.
- First enacted in 1976, replaced in 2010, and further amended in 2016, 2018, and 2020.
- It is administered by the Ministry of Home Affairs (MHA).
- FCRA registration is valid for 5 years and must be renewed before expiry.
- Around 16,000 NGOs are registered under FCRA, receiving nearly ₹22,000 crore annually.
Key Provisions of the 2026 Amendment Bill
- Designated Authority for Asset Management: The Bill proposes the creation of a Designated Authority as the core institutional mechanism for managing foreign-funded assets.
- The authority will take control of foreign contributions and assets when an organisation’s registration is cancelled, surrendered, expired, or not renewed.
- Government Power Over Assets: If registration is not restored, the government can transfer assets to a government department.
- It can also sell those assets, with proceeds going to the Consolidated Fund of India.
- Automatic Cessation of Registration: A new Section 14B is introduced, providing for “deemed cessation” of FCRA registration upon expiry or refusal of renewal.
- Registration automatically stops in three situations:
- Organisation fails to apply for renewal.
- Renewal application is rejected.
- Validity period expires without renewal.
- Time-Bound Utilisation of Funds: The amendment introduces mandatory timelines for the receipt and utilisation of foreign funds to improve financial discipline and transparency.
- Restrictions During Suspension: A suspended organisation cannot sell, transfer, or mortgage its foreign-funded assets.
- Prior government approval is mandatory for any such action.
- Centralised Investigation Control: Section 43 of the parent Act is amended, requiring any law enforcement agency or state government to obtain prior clearance from the Centre before beginning an inquiry into FCRA allegations.
- Rationalisation of Penalties: The amendment reduces the severity of penalties for violations under the Act. The maximum punishment is reduced from five years of imprisonment to one year, or fine, or both.
- Individual Accountability: The definition of “Key Functionary” now includes directors, partners, trustees, karta of Hindu Undivided Family (HUF), office-bearers of societies/trusts/trade unions, and any person with control over management.
- They are personally liable unless they prove lack of knowledge or due diligence.
- Permanent Vesting of Assets: If an organisation shuts down, becomes inactive, or ceases to exist, its foreign-funded assets will permanently vest with the government through the Designated Authority.
- Why is Regulating Foreign Contributions Necessary?
- Protects national security and sovereignty from foreign interference.
- Prevents money laundering and diversion of funds to illegal activities.
- Ensures funds are used only for developmental and charitable purposes.
- Brings transparency and accountability to NGO functioning.
- Prevents foreign funding of electoral candidates, journalists, judges, government servants, and political organisations — all of which are prohibited under FCRA.
- Concerns over regulating foreign contributions
- Administrative Delays: The registration and renewal process is often time-consuming, affecting NGOs’ ability to access funds and carry out activities.
- Political Interference: The government’s discretionary powers to cancel registrations or freeze accounts of NGOs have been misused in some cases to target NGOs critical of the government, leading to accusations of political interference.
- Hinders social and economic development: Stringent Compliance Requirements of foreign contributions affects the social and economic development in India.
- Lack of Transparency Within NGOs: Some NGOs do not clearly disclose how and where foreign funds are spent. Tightening entry-level rules alone cannot fix this internal accountability problem.
Way Ahead
- The government should ensure transparent and time-bound approval processes under FCRA.
- There is a need to balance regulatory oversight with autonomy of civil society organisations.
- Judicial and institutional safeguards should be ensured to prevent arbitrary use of powers.
- Source: TH
Central Armed Police Forces (CAPF-General Administration) Bill
Syllabus: GS2/Polity and Governance
Context
- The Parliament started discussion on the Central Armed Police Forces (CAPF-General Administration) Bill.
Major Highlights of the Bill
- Aim: To regulate recruitment, deputation, promotion, and other service conditions for the paramilitary officers.
- The bill will retain dominance of IPS officers on deputation in the five CAPFs:
- the Border Security Force (BSF), the Central Reserve Police Force (CRPF), the Central Industrial Security Force (CISF), the Indo Tibetan Border Police (ITBP), and the Sashastra Seema Bal (SSB) in leadership positions.
- Reserving Posts: The bill proposes reserving 67% of additional director general posts and 50% of inspector general posts for IPS officers on deputation.
- The posts in the ranks of Special DG and DG shall be filled exclusively by deputation.
- The government argues that IPS officers are necessary in the interest of maintaining Centre-state relationship and ensuring close coordination between the Union and the states.
- The Bill, if passed, is likely to effectively undo a Supreme Court verdict directing the Centre to progressively reduce the deputation of IPS officers in the CAPFs.
Background
- In 2015, Group A officers of the CAPFs approached the court seeking Non Functional Financial Upgradation (NFFU), cadre review, restructuring, and changes to recruitment rules to eliminate IPS deputation and enable internal promotions to Senior Administrative Grade (SAG).
- In the case of Sanjay Prakash & Others vs Union of India, 2025, the Supreme Court ruled that:
- Group A officers of CAPFs are to be treated as “Organised Services” for all purposes.
- The deputation of IPS officers to SAG posts i.e., up to the rank of Inspector General (IG), in CAPFs should be progressively reduced within an outer limit of two years.
- The court also asked for a time-bound review of cadre and framing of service rules in six months.
- Purpose of the Ruling: The decision aimed to ensure fair career progression for CAPF cadre officers and to curb the longstanding dominance of deputed IPS officers within CAPFs.
Current Organisational Setup of CAPF
- The CAPFs include the Border Security Force, Central Industrial Security Force, Central Reserve Police Force, Sashastra Seema Bal, and Indo-Tibetan Border Police.
- The Ministry of Home Affairs is the cadre-controlling authority for both IPS and CAPF officers.
- The Centre had mentioned that the deputation of IPS officers was necessary to maintain the operational readiness of the forces and to ensure Centre-State coordination.
- Reserved Seats: At present, 20% of Deputy Inspector General (DIG) posts and 50% of Inspector General (IG) posts in CAPFs are reserved for IPS officers.
Concerns of IPS Appointments in CAPFs
- Stagnation in Career Progression: Due to high reservation of senior ranks for IPS officers, CAPF cadre officers face limited promotional opportunities.
- On average, a CAPF officer takes 25 years to reach the rank of Commandant, a position they should ideally achieve in 13 years.
- Violation of Organisational Integrity: The continued deputation of IPS officers hampers institutional autonomy and the long-term professionalization of CAPFs as elite forces.
- Violation of Natural Justice and Equality: Articles 14 (Right to Equality) and Articles 16 (Equality of Opportunity in Public Employment) come into play, as CAPF cadre officers are denied equal promotional avenues compared to their IPS counterparts.
Conclusion
- The success of the bill will depend on balanced implementation i.e. ensuring operational efficiency while safeguarding the rights, morale, and well-being of personnel.
- In this regard, continuous stakeholder consultation, transparency, and robust oversight mechanisms will be crucial.
- Source: TH
Lok Sabha Passes Finance Bill 2026
Syllabus: GS2/ Polity and Governance
Context
- The Finance Bill, 2026 was passed by the Lok Sabha marking a significant step in concluding the Union Budget process for the 2026-27 financial year.
What is the Finance Bill?
- The Finance Bill is a Money Bill that gives effect to the taxation and financial proposals of the Union Government.
- It is introduced annually after the presentation of the Union Budget under Article 110 of the Constitution. It includes provisions related to;
- Provisions related to direct and indirect taxes.
- Amendments to existing tax laws.
- Changes in financial regulations and policy framework.
- Significance of the Bill
- Provides legal sanction to tax proposals, ensuring revenue mobilisation.
- Promotes ease of doing business through tax simplification.
- Encourages investment and consumption via targeted tax measures.
- Strengthens India’s path towards fiscal consolidation and growth.
How is it different from the Appropriation Bill?
- The Appropriation Bill is introduced under Article 114 of the Constitution of India to authorise the withdrawal of funds from the Consolidated Fund of India to meet government expenditure.
- It deals with appropriation of funds already voted by the Lok Sabha and charged expenditure, as provided under Article 114(3).
- The Bill does not allow any amendments, as it only seeks approval for expenditure already voted.
- It is introduced after the Demands for Grants are voted by the Lok Sabha under Article 113.
- Both the Finance Bill and Appropriation Bill are classified as Money Bills.
- Key Tax & Financial Highlights
Support for Key Sectors:
- Digital infrastructure and electronics manufacturing.
- Marine products, leather industry, and critical minerals.
- Nuclear energy and strategic sectors.
- TCS Reductions: Tax Collected at Source (TCS) on overseas tour packages and remittances for education and medical purposes (under LRS) has been reduced to 2%.
- Stock Market Taxes: Securities Transaction Tax (STT) on Futures increased to 0.05% (from 0.02%), while the rate for Options rose to 0.15%.
- Customs Exemptions: Basic customs duty has been exempted for 17 life-saving cancer drugs.
- Corporate Buybacks: All share buybacks are now taxed as capital gains; promoters face an additional buyback tax.
- Principles of Finance Bill 2026:
- Trust-based tax administration,
- Improving the ease of living for the common citizens,
- Empowering MSMEs, farmers and cooperatives,
- Strengthening India as a global business hub and
- Enabling seamless trade facilitation and customs reforms.
Key Economic Terms
- Tax Collected at Source (TCS) is a tax collected by the seller from the buyer at the time of sale of specified goods or services, as per Section 206C of the Income Tax Act, 1961.
- The seller collects a percentage of the transaction value as tax and deposits it with the government.
- Securities Transaction Tax (STT) is a direct tax levied on the purchase and sale of securities traded on recognised stock exchanges in India.
- It was introduced in 2004 through the Finance Act. The tax is collected by stock exchanges and deposited with the government.
Fiscal Estimates for FY 2026-27
- Total Expenditure: ₹53.47 lakh crore, marking a 7.7% increase over the previous fiscal year.
- The total capital expenditure proposed for the next fiscal is ₹12.2 lakh crore.
- It proposes a gross tax revenue collection of ₹44.04 lakh crore and a gross borrowing of ₹17.2 lakh crore.
- The fiscal deficit for FY27 is projected at 4.3% of GDP, lower than 4.4% in the current fiscal.
- Source: AIR
Immigration, Visa, Foreigners Registration & Tracking (IVFRT) Scheme
Syllabus: GS2/Governance
Context
- The Union Cabinet has approved the continuation of the Immigration, Visa, Foreigners Registration & Tracking (IVFRT) Scheme beyond March 31, for a period of five years, till 2031.
About
- The IVFRT platform seeks to interlink and optimize functions related to immigration, visa issuance and registration of foreigners in India.
- It was first approved by the Cabinet Committee on Economic Affairs in 2010 with project duration till 2014.
- The scheme will modernize the immigration and visa ecosystem through adoption of emerging technologies for seamless and secure passenger movement.
- IVFRT system has enabled a 100% contactless and faceless visa process leading to faster visa processing times with 91.24% of e-Visa applications having been cleared within 72 hours during the past five years.
- Average passenger clearance time at Immigration Posts has also been reduced to 2.5-3 minutes from the conventional 5-6 minutes.
- Source: TH
PRISM-SG Portal
Syllabus: GS3/ Economy
In News
- The PRISM-SG Portal was recently launched to improve coordination in highway and railway infrastructure projects.
What is PRISM-SG?
- PRISM-SG stands for Portal for Rail-Road Inspection & Stages Management – Steel Girders.
- It is a digital platform that streamlines approval and inspection processes for bridge construction.
- Specifically covers construction of:
- Road Over Bridges (ROBs)
- Railway Bridges
- The portal brings all key players onto a single platform like road owning departments, Indian Railways, contractors etc.







