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Chanda Diocese Calls for Greater FCRA Compliance and Financial Transparency

CHANDRAPUR, AUGUST 17, 2026: The Diocese of Chanda has urged Church institutions and organisations handling foreign contributions to strengthen compliance with the Foreign Contribution Regulation Act (FCRA), ensure financial transparency and exercise greater caution following a recent FCRA notification and proposed amendments to the law.


In a circular, Bishop Ephrem Nariculam called for greater responsibility in the management and utilisation of FCRA funds, stressing the need for proper financial management, transparent accounting and integrity in all matters relating to finance.


Those involved in FCRA-related activities were instructed to strictly adhere to statutory requirements and ensure that foreign contributions were used only for the purposes for which they were received. The circular also drew attention to five categories of “activities and purposes” specified in the notification and urged strict compliance during project implementation.


Expressing concern over the notification’s emphasis on the use of FCRA funds in matters relating to proselytisation and conversion, Bishop Ephrem advised those handling such funds to exercise particular caution.


The circular called for timely FCRA correspondence, proper recording of governing body meetings, regular reporting to the concerned authorities and submission of change reports wherever required.


It also highlighted the prescribed forms and deadlines for various FCRA-related requirements, including FC-6F, FC-6E, FC-3A, FC-3B, FC-3BB and FC-3C. The bishop urged those responsible for compliance to study the notification carefully and implement its provisions “in letter and spirit” to avoid complications.


Bishop Ephrem described as a “tricky clause” the provision concerning the credit and utilisation of a minimum of Rs 10 lakh in FCRA funds during the preceding two financial years. He advised organisations to maintain close coordination with auditors, particularly whenever there was uncertainty over compliance.


The circular recommended appointing a person on a relatively permanent basis to monitor FCRA transactions and compliance regularly. It also encouraged Church institutions and organisations to develop self-supporting programmes and strengthen local resource mobilisation to reduce dependence on foreign contributions.


While acknowledging the Government’s concerns over misuse of foreign contributions by some NGOs, Bishop Ephrem expressed apprehension that increasingly complex procedures could create confusion and expose organisations to punitive action for inadvertent errors, including cancellation of FCRA registrations.


He noted that several FCRA registrations had reportedly been cancelled because organisations had not received foreign contributions during the preceding three years, even when no specific financial irregularity had been pointed out.


The bishop described this as “a clear evidence that they are targeting NGOs so that they stop functioning, serving in the society.”


At the same time, the circular acknowledged that instances of misuse of FCRA funds by some NGOs had come to public attention and could have contributed to the Government’s decision to introduce tighter regulations.


Bishop Ephrem expressed concern that organisations working sincerely for the welfare of society could also be adversely affected by the regulatory changes.


Despite the challenges, he called on Church institutions and organisations to remain committed to their mission of serving the needy, downtrodden and marginalised.


The circular concluded by recalling the words of Jesus in Matthew 25:40: “Truly I tell you, whatever you did for one of the least of these brothers and sisters of mine, you did for me.”


By Catholic Connect Reporter

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