NMC Draft Amendments Propose Corpus Fund Mandate and Expanded Eligibility for Medical Colleges

NMC draft amendments introduce corpus fund requirement and tighter rules for medical colleges in India
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NMC’s 2026 draft amendments propose a mandatory corpus fund, expanded eligibility for institutions, and stricter scrutiny of medical college applications in India.National Medical Commission/Wikimedia Commons
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The National Medical Commission (NMC) has issued draft amendments to the regulations governing the establishment and expansion of medical colleges in India. Released on February 17, 2026, the proposed changes outline stricter financial safeguards, updated eligibility criteria, and tighter application scrutiny. The draft is currently open for public comments before final notification.1

What the NMC Draft Amendments Propose

The proposed changes modify the “Establishment of New Medical Institutions, Starting of New Medical Courses, Increase of Seats for Existing Courses & Assessment and Rating Regulations, 2023.” If approved, these revisions will be incorporated into the 2026 amendment framework.

The draft focuses on improving financial oversight and regulatory clarity in medical education. Major provisions include a mandatory corpus fund, expanded eligibility for establishing colleges, and stricter handling of incomplete applications.

Mandatory Corpus Fund Rule for Medical Colleges in India

A central feature of the draft is the requirement for a dedicated corpus fund. Entities applying to establish new medical colleges must submit an undertaking confirming that such a fund will be created and maintained. Existing medical colleges will also need to comply with this requirement.

The Medical Assessment and Rating Board (MARB) will determine the amount of the corpus fund and may revise it periodically. Institutions must produce documentary proof when requested by the regulator.

This measure is intended to ensure that medical colleges have adequate financial backing for sustained operations.

Eligibility Expanded: Companies and Trusts Can Establish Medical Colleges

The draft amendments clarify that companies registered under the Companies Act and eligible trusts can establish medical colleges. By explicitly recognizing these entities, the NMC has widened the pool of potential applicants.

The move is expected to streamline the regulatory language governing who may set up medical institutions while maintaining oversight through the approval process.

New Documentation Requirements Under NMC Regulations

The NMC draft retains several key prerequisites for new medical colleges. Applicants must continue to obtain:

  • An Essentiality Certificate from the concerned state government

  • Consent of Affiliation from a recognised university

  • A solvency certificate based on the latest financial year, to be submitted within the specified timeline

These requirements aim to standardise financial and administrative verification of applicants.

NMC Warns of Rejection of Incomplete Applications

The proposed amendments strengthen enforcement provisions. Applications that do not include required documents may be rejected or returned. The draft also notes that any attempt to improperly influence the regulatory process can lead to immediate rejection.

Recent reports indicate the NMC intends to strictly enforce completeness of applications as part of broader compliance tightening.

How the Draft Amendments May Impact Medical Education in India

India has experienced steady growth in the number of medical colleges in recent years. Regulators have highlighted concerns related to infrastructure adequacy, faculty availability, and financial sustainability in some institutions.

By introducing the corpus fund requirement and reinforcing documentation checks, the NMC aims to ensure that new and existing medical colleges maintain minimum financial and operational standards.

What Are the Next Steps After the NMC Draft Notification

The NMC has invited stakeholders to submit objections and suggestions within 30 days of the draft notification. After reviewing feedback, the Commission may finalize and publish the amended regulations in the Official Gazette.

If implemented, the revised framework will influence how medical colleges are established, evaluated, and monitored across India.

References

  1. National Medical Commission. Draft notification on Establishment of New Medical Institutions, Assessment & Rating (Amendment) Regulations, 2026. February 17, 2026.

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