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Public Notice. II/21022/58(10)/12/2025-FCRA(MU); Dated: 14.05.2025

1. Background

Under Rule 12(5) of the Foreign Contribution (Regulation) Rules, 2011, an NGO whose FCRA registration has lapsed cannot receive or use any foreign contribution. Until now that blanket embargo also blocked payment of compounding penalties and statutory fees, trapping many entities in a compliance catch-22.

2. What the New MHA Public Notice Says

Document – Public Notice No. 11/21022/58(10)/12/2025-FCRA(MU)
Date – 14 May 2025
Authority – Exercising powers under Section 50 of the FCRA, 2010
Relief Granted – NGOs/associations whose FCRA registration has expired may now pay their compounding penalty and government fees directly from the designated FCRA account with SBI (New Delhi Main Branch) via the FCRA online portal’s new “SBI Branch Payment” option.

3. Step-by-Step Payment Guide for NGOs

Log in at https://fcraonline.nic.in.
Navigate to ‘Compounding’ → ‘Make Payment’.
Choose “SBI Branch Payment” as the mode.
Enter the File No. of the compounding order and verify amount due.
Confirm debit from your designated SBI-NDMB FCRA account.
Download the e-receipt and keep it with your compounding order for records.

4. Practical Impact

Unblocks the compliance loop—NGOs can now clear penalties even after licence expiry, paving the way for fresh registration or renewal.
No change to other restrictions—receiving or spending foreign funds for programme activities remains barred until renewal is granted.
Digital traceability—using the portal/SBI route ensures an auditable trail, reducing manual verification for MHA.

5. Immediate Compliance Checklist

Verify that your FCRA SBI account is active and KYC-compliant.
Ensure you pay only the compounding amount shown on the portal.
Retain the portal receipt and bank debit advice in your FCRA file.
Apply for renewal (Form FC-3) promptly if you intend to resume foreign-funded activities.

6. Key Takeaways

Targeted relaxation, not a blanket waiver – The permission extends solely to compounding-related outflows.
Digital-first procedure – Payments must flow through the online portal using the designated SBI pathway.
Stay within the four corners – Any other utilisation of the FCRA account during the expired-status window remains illegal.

By carving out this narrow but crucial exception, the MHA has removed a major procedural bottleneck, enabling NGOs to regularise past defaults and work toward restoring their FCRA status without breaching the Act.