NMC Proposes Mandatory Corpus Fund for Medical Colleges
In a significant move to strengthen regulatory oversight in medical education, the National Medical Commission (NMC) has proposed making a dedicated corpus fund compulsory for new and recently established medical colleges. The draft amendments, issued this week to the 2023 regulations governing medical institution establishment and expansion, aim to ensure financial safeguards and stricter compliance.
Financial Safeguards Through Corpus Fund
Under the proposed changes, any entity seeking to open a new medical college must submit a formal undertaking confirming it will maintain a dedicated corpus fund exclusively for the institution's functioning. While the earlier regulation mentioned a corpus fund without specifying an amount, the new provision addresses this gap by requiring colleges to commit to the fund, with the exact amount to be determined later by the Medical Assessment and Rating Board (MARB).
Dr. MK Ramesh, president of the MARB, explained that instead of deleting the ambiguous clause, the Commission chose to retain it by seeking an undertaking from colleges. The corpus amount will be fixed after due deliberation and will be uniform across institutions. Although the wording includes existing colleges, the primary intent is to ensure financial preparedness for new and recently opened institutions.
Stricter Scrutiny of Applications
The draft amendments mark a clear shift toward tighter scrutiny of applications. They clarify that under the NMC Act, a "scheme" is valid only when an application is complete with all mandatory documents. This change aims to end past practices where some applicants submitted incomplete proposals and later sought additional time or court intervention to furnish missing documents.
The amendment explicitly states that incomplete applications will be rejected at the outset, without further opportunity for submission of missing materials. Mandatory documents include a valid Essentiality Certificate from the concerned state or Union Territory government, a valid Consent of Affiliation from a recognized university, and a solvency certificate issued by a chartered accountant within 90 days prior to the application deadline.
Enhanced Regulatory Powers
The regulator has also empowered itself to withhold processing or reject applications for new schemes or seat increases for specific academic years. In a strong compliance warning, the draft states that any attempt to pressure MARB or the NMC through individuals or agencies could lead to an immediate halt or rejection of the application.
India has witnessed rapid expansion in medical colleges and seats over the past decade, improving access to medical education. However, concerns about infrastructure gaps, faculty shortages, and financial sustainability have persisted. By mandating a corpus fund and eliminating room for incomplete proposals, the NMC signals that future expansion must be backed by financial preparedness and full regulatory compliance.
Public Consultation and Next Steps
The draft amendments have been opened for public consultation for 30 days, after which the Commission will decide on finalizing the revised rules. This move reflects the NMC's commitment to enhancing the quality and sustainability of medical education in India through robust financial and regulatory frameworks.
