Rules 1 and 2 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 1 gives the Rules their name and ties their commencement to that of the Act. Rule 2 defines the terms the Rules use: "Act", "bank account", "chartered accountant", "electronic form", "FCRA Account", "Form", "key functionary", "section" and "year". Since 22 June 2026 the definition of "key functionary" has governed who signs affidavits and whose names appear in several Forms.
This article reads the Rules as per the Rules as amended by the notifications named in this article; the latest consulted is S.O. 3272(E) dated 22 June 2026. The base text is the third-party consolidation of the Rules as it stood on 17 September 2019, which means clauses (a) to (e) of rule 2(1) rest on that copy and should be confirmed against the official text. Later amendments should be checked. For help with who counts as a key functionary in your body, see our NGO Darpan and NITI Aayog registration service.
Rule 1: the Rules are the Foreign Contribution (Regulation) Rules, 2011 and come into force on the date the Act comes into force. Rule 2(1): G.S.R. 695(E) dated 10 November 2020 added "electronic form" (clause (ba)) and "FCRA Account" (clause (f)). S.O. 3272(E) dated 22 June 2026 added "key functionary" (clause (ca)), which includes six listed classes of persons.
Rule 1: short title and commencement
| Sub-rule | Text |
|---|---|
| (1) | These rules may be called the Foreign Contribution (Regulation) Rules, 2011 |
| (2) | They shall come into force on the date on which the Foreign Contribution (Regulation) Act, 2010 shall come into force |
Rule 1 is unamended in the notifications held. The date on which the Act comes into force is left by section 1(3) of the Act to a notification that is not among the texts consulted, so no date is given here; see the article on section 1. The copy consulted notes that the Rules were published by G.S.R. 349(E) dated the 29th April, 2011.
Rule 2(1): the definitions, one by one
| Clause | Term | Meaning |
|---|---|---|
| (a) | "Act" | The Foreign Contribution (Regulation) Act 2010 |
| (aa) | "bank account" | A bank account in a core banking compliant bank, which is integrated with the Public Financial Management System (PFMS) |
| (b) | "chartered accountant" | As in clause (b) of sub-section (1) of section 2 of the Chartered Accountants Act, 1949 |
| (ba) | "electronic form" | As in clause (r) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000) |
| (c) | "Form" | A form appended to the Rules |
| (ca) | "key functionary" | See below |
| (d) | "section" | Section of the Act |
| (e) | "year" | The financial year from the 1st day of April to the 31st day of March of the next calendar year |
| (f) | "FCRA Account" | The FCRA Account referred to in section 17 of the Act |
Where each clause comes from:
- (a) to (e) are in the consolidation consulted. Clause (aa) is shown there as inserted by G.S.R. 199(E) dated 7.3.2019, as that copy's own bracket note puts it. The notifications held after 2019 do not omit it.
- (ba) and (f) were inserted by paragraph 2 of G.S.R. 695(E) dated the 10th November, 2020: (ba) after clause (b), and (f) after clause (e).
- (ca) was inserted by paragraph 2 of S.O. 3272(E) dated the 22nd June, 2026, after clause (c).
Drafting point. Clause (f) was added after clause (e), so "FCRA Account" sits at the end, out of alphabetical order. That is how the notification places it.
"Electronic form"
Clause (ba) borrows its meaning from the Information Technology Act, 2000. The Rules then say "in electronic form" where the earlier text said "electronically online", as in rules 6, 7, 9, 17 and 17A and elsewhere. This article gives no portal step. For the term itself, see our posts on the Information Technology Act, 2000 and, for signatures, digital and electronic signatures under that Act; those posts are about a different law.
"FCRA Account"
Clause (f) points to the account in section 17 of the Act, as substituted in 2020; see the article on section 17. Rules 9, 12 and 15 use the term.
"Key functionary": rule 2(1)(ca)
S.O. 3272(E) defines "key functionary", "in relation to a person other than an individual", as including:
| Item | Class |
|---|---|
| (i) | The Director of a company |
| (ii) | A partner in a firm |
| (iii) | A trustee of a trust |
| (iv) | The Karta of a Hindu undivided family |
| (v) | An office bearer, member of the governing body, managing committee or other controlling authority of a society, trust, trade union or association of individuals |
| (vi) | Any other officer or person, by whatever name called, who has control over, or responsibility for the management or affairs of such person |
Points on the wording:
- "Includes". The list is inclusive, not exhaustive. Item (vi) is a catch-all based on control over, or responsibility for, management or affairs.
- Only for a person other than an individual. The definition does not apply to an individual.
- Different entities, different items. A company's directors fall under item (i); a firm's partners under (ii); a trust's trustees under (iii) and also (v); a society's office bearers and governing body members under (v). For the entities themselves, see our posts on the Societies Registration Act, 1860 (a different Act) and Hindu undivided families.
- Wider than the old words. Before 2026 the Rules spoke of "office bearer and key functionary and member", "Members of the Executive Committee or Governing Council", "chief functionary or office bearer" and "office-bearers or members of the governing body". The 2026 notification replaced several of these with "key functionaries".
Where "key functionary" now appears
| Rule | What the 2026 notification (S.O. 3272(E)) did |
|---|---|
| Rule 5 | In clauses (i) and (iii), "Members of the Executive Committee or Governing Council" replaced by "key functionaries" (paragraph 3); see rule 5 |
| Rule 9 | In sub-rule (1)(a), "each office bearer and key functionary and member" replaced by "each key functionary"; in sub-rule (2)(f)(ii), items (B), (C) and (D) changed (paragraph 4); see rule 9 |
| Rule 12 | In sub-rule (2), "each office bearer, key functionary and member" replaced by "each key functionary" (paragraph 6); see rule 12 |
| Rule 17A | In clause (iv), "office bearers or key functionaries or members" replaced by "key functionaries" (paragraph 9); see rule 17A |
Example (invented). The Lok Kalyan Samiti is a registered society whose governing body has nine members, including a president and a secretary. Under item (v) each of them is a key functionary. The Samiti's treasurer, who is not on the governing body but manages its accounts, would be assessed under item (vi): whether he has control over, or responsibility for, the management or affairs of the Samiti is a question of fact.
Rule 2(2): words defined in the Act
"Words and expressions used and not defined herein but defined in the Act shall have the meaning assigned to them in the Act." Terms such as "foreign contribution", "association" and "certificate" therefore take their meaning from section 2 of the Act.
Need help identifying your key functionaries?
Affidavits, Forms and changes of governing body turn on who is a key functionary. Our NGO Darpan and NITI Aayog registration team can map your constitution documents against rule 2(1)(ca) and the rules that use it.
Key takeaways
- The Rules come into force on the date the Act comes into force; no date is stated here.
- "Electronic form" and "FCRA Account" were added to rule 2(1) by G.S.R. 695(E) dated 10 November 2020.
- "Key functionary" was added by S.O. 3272(E) dated 22 June 2026 and includes six classes, ending with a catch-all.
- Rules 5, 9, 12 and 17A now use "key functionaries" in place of older expressions.
- Clauses (a) to (e), including (aa), rest on the third-party consolidation; confirm against the official text.
Read next
- Rule 3: guidelines for declaring an organisation of a political nature
- Rule 5: what counts as administrative expenses
- Rule 9: application for registration, conditions and scope
- Rule 17A: intimating changes
Disclaimer: Based on the Foreign Contribution (Regulation) Act, 2010 as enacted, read with the Amendment Act, 2020 and the other amendments named in this article, and on the Foreign Contribution (Regulation) Rules, 2011 as amended by the notifications named (latest consulted: S.O. 3272(E) dated 22 June 2026), as consulted on 2 October 2026. No consolidated official text was available; some provisions rest on a third-party copy and are identified as such. Later amendments, notifications and Ministry of Home Affairs orders should be checked. This article is general information, not legal advice; check the official text before acting.