Rules 9 and 9A 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.
Prior permission under section 11(2) is for receipt of a specific amount from a specific donor for a specific purpose. Rule 9(2) sets the conditions: an FCRA Account, intimation of utilisation accounts, a donor's commitment letter, and tests where the donor and the recipient share members. Rule 9A lets the Central Government permit receipt in instalments where the value is over rupees one crore, with Form FC-3BB for the second and later instalments.
This article covers rule 9(2), (2A) and rule 9A as per the Rules as amended by the notifications named in this article: G.S.R. 695(E) of 10 November 2020, G.S.R. 506(E) of 1 July 2022 and S.O. 3272(E) of 22 June 2026, the latest consulted. The base is the third-party consolidation of 17 September 2019. Later amendments should be checked. For an organisation that expects a one-off grant for a project, our 12A, 80G and CSR registration service sits alongside the foreign contribution rules; it is a separate law and nothing here is drawn from it.
A person seeking prior permission applies in Form FC-3B and must have an FCRA Account (rule 9(2)(d)). Utilisation accounts are intimated in Form FC-6D within forty five days (clause (e)). Clause (f) requires a specific commitment letter from the donor and sets common-members tests including seventy-five per cent. limits. Under rule 9A, if the value is over rupees one crore, the Central Government may permit receipt in instalments; later instalments need Form FC-3BB, seventy-five per cent. utilisation of the previous instalment and a field inquiry.
Rule 9(2): what survives and what was omitted
In the consolidation consulted, clauses (a), (b) and (c) of sub-rule (2) are shown as omitted by G.S.R. 966(E) dated 14.12.2015. They had provided for a hard copy to follow the on-line application, and a six-month wait after the request ceased. The application for prior permission is now made under rule 9(1)(a) in Form FC-3B; see the article on rule 9(1). Sub-rule (2) now has clauses (d), (e) and (f).
Rule 9(2)(d): the FCRA Account
G.S.R. 695(E), paragraph 6(iii)(A), substituted clause (d): "Any person making an application for obtaining prior permission under clause (a) of sub-rule (1) shall have an FCRA Account." This is the counterpart of section 12(1A) for prior permission.
Rule 9(2)(e): utilisation accounts
A person seeking prior permission "may open one or more accounts in one or more banks for the purpose of utilising the foreign contribution after it has been received and in all such cases intimation in electronic form in form FC-6D shall be furnished to the Secretary, Ministry of Home Affairs, New Delhi within forty five days of the opening of any account". "Electronically online" became "in electronic form" by G.S.R. 695(E), paragraph 6(iii)(B), and "fifteen days" became "forty five days" by G.S.R. 506(E), paragraph 3(ii). Compounding for failure to intimate within time is at serial number 10 of the table under section 41; see the article on section 41.
Rule 9(2)(f): specific amount, donor and project
G.S.R. 695(E), paragraph 6(iii)(C), inserted clause (f): "A person seeking prior permission for receipt of specific amount from a specific donor for carrying out specific activities or projects mentioned in clause (c) of sub-section (4) of section 12 of the Act shall meet the following criteria". Section 12(4)(c) requires the applicant to have "prepared a reasonable project for the benefit of the society for which the foreign contribution is proposed to be utilised". See the article on section 12(4).
(f)(i): commitment letter
The person must "submit a specific commitment letter from the donor indicating the amount of foreign contribution and the purpose for which it is proposed to be given".
(f)(ii): common members of recipient and donor
For Indian recipient persons and foreign donor organisations having common members, prior permission is granted subject to these conditions. The table gives the 2020 text and the 2026 change.
| Item | Condition as it stands |
|---|---|
| (A) | The chief functionary of the recipient person shall not be a part of the donor organisation |
| (B) | Seventy-five per cent. of the key functionaries of the person shall not be members or employees of the foreign donor organisation (S.O. 3272(E), paragraph 4(c)(i), replacing "the office-bearers or members of the governing body") |
| (C) | In case of a foreign donor organisation being a single individual, that individual shall not be the key functionary of the recipient person (S.O. 3272(E), paragraph 4(c)(ii), replacing "the chief functionary or office bearer") |
| (D) | In case of a single foreign donor, seventy-five per cent. of the key functionaries of the recipient person shall not be the family members or close relatives of the donor (S.O. 3272(E), paragraph 4(c)(iii), replacing "the office bearers or members of the governing body") |
Item (A) is unchanged and still speaks of the "chief functionary". "Key functionary" is defined in rule 2(1)(ca); see rules 1 and 2. The rule does not say how the seventy-five per cent. is to be proved.
Rule 9(2A): pending applications
G.S.R. 695(E), paragraph 6(iv), inserted: "Every application for obtaining prior permission under clause (a) of sub-rule (1) made before the commencement of these rules but not disposed of, shall be considered after furnishing the details of FCRA Account."
Slip to note. Clause (d) of rule 9(1) and of rule 9(2) both refer to "an application ... under clause (a) of sub-rule (1)", including the prior permission application; they are quoted as printed.
Rule 9A: receipt in instalments
Rule 9A was inserted by G.S.R. 695(E), paragraph 7, headed "Permission for receipt of foreign contribution in application for obtaining prior permission": "If the value of foreign contribution on the date of final disposal of an application for obtaining prior permission under clause (a) of sub-rule (1) of rule 9 is over rupees one crore, the Central Government may permit receipt of foreign contribution in such instalments, as it may deem fit".
The proviso was substituted by paragraph 5 of S.O. 3272(E): "Provided that an association seeking release of the second or any subsequent instalment shall make an application in Form FC-3BB and the second or any subsequent instalment shall be released only after utilisation of seventy-five per cent. of the foreign contribution received in the previous instalment and after field inquiry of such utilisation."
| Stage | Condition |
|---|---|
| Trigger | Value of foreign contribution over rupees one crore on the date of final disposal of the prior permission application |
| Central Government | May permit receipt in such instalments as it deems fit ("may", not "shall") |
| Second and later instalments | Application in Form FC-3BB by the association |
| Release | Only after utilisation of seventy-five per cent. of the foreign contribution received in the previous instalment and after field inquiry |
The 2020 proviso said the second and subsequent instalment "shall be released after submission of proof of utilisation of seventy five per cent. of the foreign contribution received in the previous instalment and after field inquiry". The 2026 proviso replaced it, adding the Form and the word "utilisation". For Form FC-3BB, see the article on Forms FC-3A, FC-3B, FC-3BB and FC-3C.
Example (invented). The Sneh Bharti Society obtains prior permission for a project funded by one foreign donor, with a commitment letter stating the amount and purpose. The value is over rupees one crore, so the Central Government permits receipt in instalments. After the first instalment, the Society must utilise seventy-five per cent. of it and apply in Form FC-3BB; a field inquiry follows before the second instalment is released.
Need help with a prior permission application?
A one-time grant from a specific donor needs a commitment letter that matches the project and a clear picture of any common members. Speak to our 12A, 80G and CSR registration team and bring the donor's letter, the project note and the list of key functionaries.
Key takeaways
- Prior permission applicants must have an FCRA Account (rule 9(2)(d)) and intimate utilisation accounts in Form FC-6D within forty five days (clause (e)).
- Clause (f) needs a specific commitment letter from the donor and applies common-members tests with seventy-five per cent. limits.
- Rule 9A permits instalments where the value is over rupees one crore.
- Second and later instalments require Form FC-3BB, seventy-five per cent. utilisation of the previous instalment and a field inquiry.
- The 2026 notification replaced several expressions with "key functionaries".
Read next
- Rule 9: application for registration, conditions and scope
- Rule 9: fees, second application and foreign nationals as key functionaries
- Section 11: registration or prior permission
- Forms FC-3A, FC-3B, FC-3BB and FC-3C
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.