Draft Amendment Seeks Financial Safeguards for New and Existing Institutions
New Delhi: The National Medical Commission (NMC) has proposed making it mandatory for medical colleges to maintain a dedicated corpus fund as part of draft amendments to the “Establishment of New Medical Institutions, Assessment & Rating Regulations, 2023.” The draft was notified on February 17, 2026, and will come into force after publication in the Official Gazette.
Under the proposed amendment, a new paragraph will be inserted under Clause 15. It mandates that any applicant seeking to establish a new medical college must submit an undertaking at the time of application, confirming that a corpus fund has been earmarked exclusively for the functioning of the institution.
Importantly, the requirement will not be limited to new colleges. All existing medical colleges will also be required to maintain a dedicated corpus fund for their operations. The amount of the corpus fund will be determined by the Medical Assessment & Rating Board (MARB) and communicated through an official notice. The fund amount may be revised from time to time, and colleges must furnish documentary proof whenever directed by MARB.
This move effectively transforms the corpus fund from a loosely defined expectation into a binding regulatory obligation. The amendment emphasises continuous financial compliance rather than a one-time submission of proof during the application process.
Earlier, Clause 9(c) required applicants to provide documentary evidence of establishing a corpus fund for a new medical institution. However, the regulation did not clearly specify the amount or enforcement mechanism, which created ambiguity. To address these gaps, the NMC has removed the earlier provision and shifted the requirement under Clause 15 with clearer compliance expectations.
The introduction of this clause appears aimed at strengthening financial accountability in medical education. In recent years, India has seen rapid growth in the number of medical colleges, raising concerns about infrastructure adequacy, faculty availability, and long-term financial sustainability.
Speaking to media, Dr MK Ramesh, President of MARB, explained that while the earlier regulation mentioned a corpus fund, it lacked clarity on the amount, making enforcement difficult. The Commission has opted to retain the requirement through a formal undertaking, with the corpus amount to be fixed after due deliberation and applied uniformly once finalised.
The gazette notification also proposes additional amendments, including additions and deletions of clauses under the broader “Establishment of New Medical Institutions, Starting of New Medical Courses, Increase of Seats for Existing Courses & Assessment & Rating Regulations, 2023.” The draft signals the regulator’s intent to ensure that future expansion in medical education is backed by robust financial safeguards and stricter compliance norms.
