NMC proposes mandatory dedicated corpus fund for running medical colleges

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 Medical Institutions, Assessment and Rating Regulations, 2023.

The draft amendments were notified on February 17, 2026. Once finalised, they will be known as the “Establishment of New Medical Institutions, Assessment & Rating (Amendment) Regulations, 2026” and will come into effect from the date of publication in the Official Gazette.

What Is the New Corpus Fund Clause?

Under the draft amendment, a new paragraph will be inserted under Clause 15. It states that the applicant/entity that seeks to open a medical college will now have to submit an undertaking at the time of submission of application for earmarking a corpus fund dedicated to functioning of the new medical institution.

Further, all Medical Colleges already running will also have to maintain a corpus fund dedicatedly applicable to functioning of the medical college. The amount of such Corpus fund will be determined by the Medical Assessment & Rating Board. The amount may be revised from time to time. Colleges will have to submit documentary proof whenever directed by the MARB.

This means that maintaining a financial reserve will now become a compulsory regulatory requirement rather than just a general expectation.

The notification stated:

A “new para” shall be inserted after “first para” and before “the first proviso” of the clause 15 as: "The applicant/entity shall submit an undertaking at the time of submission of application for earmarking a corpus fund dedicatedly applicable to functioning of the new medical institution. Further, all Medical Colleges already running will also have to maintain a corpus fund dedicatedly applicable to functioning of the medical college. The amount of such Corpus fund shall be determined by the Medical Assessment & Rating Board and shall be communicated through Notice. The amount of corpus fund shall be subject of revision time to time. The College will have to submit the documentary proof whenever directed by the MARB."

What was the earlier position?

Earlier, Clause 9(c) required applicants to submit documentary proof showing the establishment of a corpus fund for the functioning of the new medical institution.

However, the regulation did not clearly specify several details beacuse of which the apex regulatory body decided to remove this clause and add a new clause i,e, Clause 15. This means that the NMC instead of asking for proof at the time of application, now wants a formal commitment and continuous compliance.

Why is this being introduced? 

The main intention behind the addition of the new clause and the removal of the existing clause appears to be financial accountability. 

Over the past few decades, India has witnessed a rapid expansion in medical colleges. While the growth has improved access to medical education, concerns about infrastructure gaps, faculty shortages and financial sustainability have persisted. 

By mandating a corpus fund and eliminating room for incomplete proposals, the NMC appears to be signalling that future expansion must be backed by financial preparedness and full regulatory compliance.

Speaking to TOI, Dr MK Ramesh, president of the MARB, said, "The earlier regulation had mentioned a corpus fund but did not specify any amount, making it difficult to enforce. Instead of deleting the clause, the Commission chose to retain it by seeking an undertaking from colleges, with the exact amount to be fixed after due deliberation. While the wording includes existing institutions, the intent is largely to ensure financial safeguards for new and recently opened colleges. Once decided, the corpus amount will be uniform."

Medical Dialogues recently reported that the National Medical Commission (NMC) issued a gazette notification proposing draft amendments, including the addition and removal of clauses, to the Establishment of Medical Institutions, Assessment and Rating Regulations 2023.

The gazette notification, issued on February 17, 2026, proposes changes to the “Establishment of New Medical Institutions, Starting of New Medical Courses, Increase of Seats for Existing Courses & Assessment & Rating Regulations, 2023.”

Also read- NMC proposes amendments to Establishment of New Medical Institutions, Assessment and Rating regulations 2023