The Government of India has formally notified significant amendments to the Corporate Social Responsibility (CSR) Rules under the Companies Act, 2013, specifically tightening compliance and reporting requirements for public limited companies. Effective from April 1, 2026, the amendments seek to enhance the accountability, transparency, and impact evaluation of CSR activities by listed entities. The Ministry of Corporate Affairs (MCA) has introduced these changes to ensure that CSR is not treated as a mere statutory obligation but as a strategic, measurable contribution to national development goals.

As per the revised rules, public limited companies are now required to file a detailed CSR Impact Assessment Report for every project exceeding ₹1 crore in outlay or with a duration longer than 12 months. These reports must be conducted by independent third-party agencies and submitted along with the annual board report. Furthermore, the timeline for utilizing unspent CSR funds has been tightened to six months (previously 12 months), after which the unutilized amount must be transferred to a government-notified CSR fund. The amendments also introduce a mandatory quarterly CSR fund utilization disclosure, which must be published on the company’s website and filed through a revised Form CSR-2.

Additionally, all public companies are now required to register their implementing agencies with the MCA and furnish project-wise data, including geolocation, sector alignment, and expected outcomes. Administrative overheads have been capped more strictly at 5% of total CSR expenditure, excluding any personnel costs or travel unrelated to project implementation. Non-compliance with the updated rules may lead to financial penalties and regulatory restrictions, especially for repeat defaulters. These amendments are widely seen as a move to institutionalize CSR governance and ensure that public companies contribute effectively to inclusive and sustainable development.