NMC raises bank guarantee for new medical colleges

NMC raises bank guarantee for new medical colleges

TIMES NEWS NETWORK 

Ahmedabad : The National Medical Commission (NMC) has recently announced a significant increase in the performance bank guarantees (PBG) required for establishing new undergraduate and postgraduate medical colleges, applicable from the academic year 2025-26. This marks the first time the commission has implemented a hike and introduced varying PBG amounts based on the number of admission seats, as noted by experts.

 According to a notice issued by the NMC on Sep 2, medi cal colleges seeking to admit 50 MBBS students will need to provide a bank guarantee of Rs 15 crore for a six-year period. Institutions aiming to admit 100 MBBS students will be required to submit a bank guarantee of Rs 20 crore for the same duration. If a college wishes to secure an additional 50 seats, an extra bank guarantee of Rs 5 crore will be necessary. For colleges intending to admit 150 MBBS students, the bank guarantee has been set at Rs 25 crore for the six-year tenure. 

The notice also specifies the rates for postgraduate degrees and higher specialiti es. “For a single PG degree or higher speciality course, the bank guarantee is set at Rs 2 crore for a tenure of four years. Any additional PG degree or higher speciality course will require a bank guarantee of Rs 25 lakh per course seat, also valid for a 4-year tenure.” The increase in bank guarantees is expected to result in an investment of approximately Rs 300 crore to Rs 350 crore for setting up a new medical college, which experts believe will make it nearly impossible for smaller trusts to establish new medical educational institutions. However, they have clarified that this will not lead to any fee increase for students.