Diocese urges strict compliance needs for foreign funding bill

CHANDRAPUR, Maharashtra (Indian Catholic News) — A Syro Malabar bishop in western India has called for proper management and transaction of monies, transparency in accounting, and absolute faithfulness in all financial matters following proposed amendments to the nation’s Foreign Contribution Regulation Act (FCRA) bill.

The directive was issued via an official “Circular on FCRA Notification /Prot. No. 188/2026” by Bishop Ephrem Nariculam of Chanda.

Addressing priests, brothers, and sisters, the bishop stated that “the notification and the proposed amendment of FCRA Bill pose before us more responsibility and additional care in accounting, finance transactions, project implementation etc.”

Bishop Nariculam said religious personnel must ensure “proper management and transaction of money” while maintaining “transparency in accounting and be faithful in all matter connected to finance”.

The FCRA regulates foreign funding of NGOs and religious institutions. Amendments proposed in 2026 have drawn concern from church bodies and civil society groups, who argue that restrictions could hinder charitable work.

After protests from Opposition parties and Christian churches, the Government of India on August 13 referred the bill to a Joint Parliamentary Committee that is tasked to submit its report by the last day of the first week of the Winter Session 2026.

Adherence to guidelines and caution

The bishop outlined several instructions, stressing that personnel must “strictly follow the stipulations laid down with regard to FCRA projects”. He noted: “We shall bear in mind that the notification lay undue emphasis on the use of FCRA money for proselytization / conversion and so be very cautious”.

Furthermore, the circular mandates that the “five categories of ‘activities and purposes’ laid down in the notification shall be strictly observed in project implementation” and that “the utilization of fund as per the purpose shall be punctiliously abided by”.

Regarding operational procedures, the circular emphasizes keeping “in close contact with auditors at each step and whenever there is a doubt”. It also recommends that “someone should be specially appointed with some permanency to monitor FCRA transaction on regular basis” and that organizations should “focus more on local finance resource mobilization”.

Concerns over procedural complexity

Expressing concern over the impact of the regulations, the circular notes that “it looks that the notification is to complicate the process and confuse those involved in the procedures so that the officer can easily identify human errors and take punitive action or cancel the registration”.

Addressing past enforcement actions, Bishop Nariculam notes: “The reason stated for the cancellation of many FCRA registration is that there wasn’t any foreign money transaction in the past three years. They haven’t pointed out any irregularity. It is a clear evidence that they are targeting NGO’s so that they stop functioning, serving in the society”.

While criticizing the stringent regulations, the circular acknowledges compliance issues within the sector, noting that “we have to confess that there are a few cases of some NGO’s do misuse the FCRA money and they are brought to the public attention”.

The document adds that “probably that could also be a reason the Government has come out with notification,” while expressing regret that “it is pity that those NGO’s do serve society with commitment and sincerity are also badly affected”.

Despite these hurdles, Bishop Nariculam concludes with a commitment to service, stating that “we shall be resolved to do our best to continue our service to the needy, downtrodden and marginalized”.

Read the circular.