NMC Rationalizes Performance Bank Guarantee for 14 PG Medical Courses

NMC Rationalizes Performance Bank Guarantee for 14 PG Medical Courses

New Delhi – The National Medical Commission (NMC) has announced significant updates regarding Performance Bank Guarantees (PBG) for medical colleges, effective from the academic year 2025-26. This decision aims to enhance financial clarity and support for medical institutions across India.

In a previous notification on 20 September 2024, the NMC has revised the rates and tenure of PBGs and electronic Bank Guarantees (e-PBGs). These changes are crucial for institutions seeking to establish or expand their medical programs.

Updated Bank Guarantee Requirements

The new PBG framework includes different requirements based on the number of MBBS seats and postgraduate (PG) programs offered. Below is a summary of the revised rates:-
 

Purpose	Tenure/ Rate
Establishment of medical college for 50 MBBS seats	6 years / ₹15 Crores
Establishment of medical college for 100 MBBS seats (or additional 50)	6 years / ₹20 Crores (or ₹5 Crores for additional 50 seats)
Establishment of medical college for 150 MBBS seats (or additional 50)	6 years / ₹25 Crores (or ₹5 Crores for additional 50 seats)
For PG degree / Higher Speciality	4 years / ₹2 Crores for first 4 PG seats
For additional PG degree / Higher Speciality seat	4 years / ₹25 lakh per additional seat

The rate revision and duration of the performance bank guarantees/e-PBG have also been communicated by Apex Medical Commission. The NMC amended the rates and the performance bank guarantees/e-PBG term that will be in effect from 2025 to 2026. The notice dated 02.09.2024 announced increased charges, which are Rs 15 crore for six years, for the establishment of a medical college and admission to fifty MBBS seats.

The bank guarantee rate for admission to 100 and 150 MBBS seats, for a 6-year tenure, is Rs 20 crores (or Rs 5 crores in the case of an extra 50 seats), and Rs 25 crores, respectively. The charge for a postgraduate degree or higher speciality is Rs 2 crores for four years. The rate for an additional postgraduate degree or higher speciality is Rs 25 lakh for each additional course seat or penalty for four years.
The pricing for PG degrees or higher specialisations is Rs 2 crores for 4 years for the first 4 PG seats, according to the latest announcement. The rate of bank guarantee for each additional PG degree or higher specialty seat is Rs. 25 lakh for four years per additional seat in that PG course.

Exemption from Bank Guarantees

One of the notable changes is the exemption from bank guarantees for 14 specific postgraduate courses. This move is intended to alleviate financial burdens for institutions offering these specialized programs.

There shall be no Bank Guarantee/ Electronic Bank Guarantee for the following
Post Graduate courses:

i. MD (Aerospace Medicine)
ii. MD (Anatomy)
iii. MD (Biochemistry)
iv. MD (Biophysics)
v. MD (Community Medicine)
vi. MD (Forensic Medicine & Toxicology)
vii. MD (Health Administration)
viii. MD (Hospital Administration)
ix. MD (Marine Medicine)
x. MD (Microbiology)
xi. MD (Pharmacology)
xii. MD (Physical Medicine and Rehabilitation)
xiii. MD (Physiology)
xiv. MD (Sports Medicine)

The recent changes to the Performance Bank Guarantee (PBG) requirements for medical colleges are grounded in regulatory frameworks set forth by the National Medical Commission (NMC). Specifically, these changes are enacted under Section 18(b) of the Medical Assessment and Rating Board (MARB) notification no. M27011/01/2023-MARB, on 2nd June 2023.  This section of the MARB notification provides the NMC with the authority to establish guidelines and requirements for medical institutions, ensuring they maintain adequate financial safeguards.

The notification was subsequently published on the NMC’s website on 8th June 2023, providing broad visibility and ensuring that all stakeholders in the medical education sector are informed about the changes. This process reflects the NMC’s commitment to transparency and regulatory clarity, allowing institutions to prepare adequately for compliance.