Who is a key functionary under FCRA

FCRA & FCRR
1

FCR Rules 2026 as amended has defined ‘Key Functionary’ as a standard nomenclature to be used while filing Form FC 3A, 3B, 3C and 6E. There is lot of debate and ambiguity around Key Functionary.

The definition of Key Functionary is captured from the Rules below to include:
(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; and

(vi) any other officer or person, by whatever name called, who has control over, or responsibility for the management or affairs of such person;’.

Director of Section 8 company, trustee of trust, Karta of HUF, member of Governing Body/Managing Committee of society/AOP are clearly Key Functionary. MHA has also mentioned that a person who has control over/responsibility for management is also a Key Functionary. So a CEO who is not a Board member but with control and management responsibility and such officials will be a key functionary and will vary from organization to organization. Please review internally and formalise who is clearly Key Functionary are in your organization.

Your organization may have employees in finance and program departments as bank signatory but not in control/management responsibility position for the organisation as a whole. Such employees will not be Key Functionary and FC 6E is not required to be filed. Please also explain SBI NDMB for such signatory as not being Key Functionary.

CS Sharad Bhargava

2

Thank you and useful.

3

For large NGOs where managers at various levels carry varying degree of financial and other authority, what would be the interpretation of key functionaries. Say if there are 30 such managers, considering all of them key functionaries would make compliance impossible. So how would the interpretation be done in such cases? Or would the interpretation be something parallel to ‘Key Managerial Personnel’ under Companies Act?

4

Thanks Molly for your observations. We know for sure how difficult addition/deletion/declaration etc for a key functionary is under FCRA. So, a narrower interpretation may make sense unless MHA specifies ‘officer who has control over, or responsibility for the management or affairs of such person’. Control and management of affairs may be looked at the organization level thereby making CEO, COO, CFO a key functionary. This is also in line with KMPs under Companies Act. Other members in the Forum may also input.

CS Sharad Bhargava