The National Medical Commission (NMC) has proposed a key amendment that would make it compulsory for all medical colleges to maintain a dedicated corpus fund. The proposal forms part of draft changes to the “Establishment of New Medical Institutions, Assessment and Rating Regulations, 2023.”
The draft amendments were notified on February 17, 2026. After final approval, the revised rules will be titled the “Establishment of New Medical Institutions, Assessment & Rating (Amendment) Regulations, 2026” and will take effect from the date of their publication in the Official Gazette.
What the Proposed Amendment Says
Under the proposed change, a new paragraph will be added to Clause 15. It requires any applicant or entity seeking permission to start a new medical college to submit an undertaking at the time of application, confirming that a corpus fund has been earmarked exclusively for the institution’s functioning.
In addition, all existing medical colleges will also be required to maintain such a dedicated corpus fund. The amount of this fund will be determined by the Medical Assessment and Rating Board (MARB) and communicated through an official notice. The corpus amount may be revised periodically, and colleges must furnish documentary evidence whenever directed by MARB.
This effectively turns the maintenance of a financial reserve into a mandatory regulatory requirement rather than a general expectation.
Earlier Provision
Previously, Clause 9(c) required applicants to submit documentary proof that a corpus fund had been established for the functioning of the proposed medical institution. However, the regulation did not clearly define the required amount or other specifics. Due to these ambiguities, the NMC has decided to remove that clause and instead introduce a clearer provision under Clause 15.
Under the new approach, instead of merely seeking proof at the application stage, the regulator will require a formal undertaking along with ongoing compliance.
Rationale Behind the Move
The introduction of the revised clause appears aimed at strengthening financial accountability in medical education.
India has seen significant growth in the number of medical colleges over recent decades. While this expansion has improved access to medical education, concerns remain regarding infrastructure gaps, faculty shortages and long-term financial sustainability.
By making the corpus fund compulsory and removing ambiguities in earlier provisions, the NMC is signalling that future expansion must be backed by financial stability and strict regulatory adherence.
Speaking to TOI, MARB President Dr M K Ramesh said that although the earlier regulation mentioned a corpus fund, it did not specify the amount, making enforcement difficult. Rather than removing the concept altogether, the Commission has opted to retain it by requiring an undertaking from institutions, with the specific amount to be finalised after due deliberation. He added that although the wording covers existing colleges, the primary focus is on ensuring financial safeguards for new and recently established institutions. Once decided, the corpus requirement is expected to be uniform.
The proposal outlining amendments to the “Establishment of New Medical Institutions, Starting of New Medical Courses, Increase of Seats for Existing Courses & Assessment & Rating Regulations, 2023.”
