After clearing NEET and getting allotted a government medical college seat, most students focus on fees and location. But there's a critical factor that could cost you Rs 10-50 lakh after graduation if you don't plan for it: the service bond.
Every state has its own rules on how much stipend you'll receive during internship, how long you must serve in government hospitals after completing your MBBS, and what penalty you'll pay if you break the bond. This guide covers UG (MBBS) in detail — verified state-by-state from official DME prospectuses and government orders.
What is a Medical College Service Bond?
A service bond is a legal agreement that government medical college students sign at the time of admission. It says: after completing your MBBS or MD/MS, you must serve in government hospitals (usually rural or semi-urban) for a specified period. If you don't serve, you pay a penalty — often lakhs of rupees.
The logic is simple: the government subsidises your medical education (fees as low as Rs 10,000/year), and in return, you serve the public healthcare system. But the financial implications are significant, and they vary wildly between states.
UG (MBBS) Service Bond & Internship Stipend — State by State
All bond amounts and stipend figures verified from official state DME prospectuses and government orders (2024-25 session unless noted). Bond = compulsory post-MBBS government service obligation. Discontinuation penalty = what you pay if you leave mid-course — separate from the service bond.
| State | Internship Stipend | Post-MBBS Bond / Service | Bond Penalty |
|---|---|---|---|
| West Bengal | Rs 30,000–31,000/month | No compulsory service bond | Rs 1L (seat discontinuation only) |
| Delhi | Rs 23,000/month | 1 year as Junior Resident (NEW 2025-26) | Rs 15,00,000 |
| Punjab | Rs 22,000/month | 2 years (state quota), 1 year (AIQ) | Rs 20,00,000 |
| Gujarat | Rs 21,000–22,000/month | 1 year rural service | Rs 20,00,000 |
| Kerala | Rs 20,000/month | No compulsory service bond | Rs 10L (seat discontinuation only) |
| Odisha | Rs 20,000/month | 2 years | Rs 25,00,000 |
| Maharashtra | Rs 18,000/month | 1 year mandatory rural (compulsory since 2022 GR — cannot opt out) | Rs 10,00,000 |
| Karnataka | Rs 60,000/month (during 1-yr rural service) | Bond 1: 1 year rural service (all candidates, all seat types) · Bond 2: 3-year govt service obligation (G-quota holders only) | Rs 50,00,000 (MD/MS Degree, if 3-yr Govt obligation broken); Rs 25,00,000 (Diploma) |
| Tamil Nadu | Rs 15,000–20,000/month | 5 years rural service (must begin within 2 years of registration) | Rs 5,00,000 (bond violation); Rs 10,00,000 (mid-course discontinuation) |
| Telangana | Rs 15,000/month | No compulsory service bond | Rs 20L (seat discontinuation only) |
| Andhra Pradesh | Rs 15,000/month | No compulsory service bond | Rs 3,00,000 + 18% GST (seat discontinuation only) |
| Rajasthan | Rs 14,000–15,000/month | 2 years | Rs 5,00,000 |
| Uttar Pradesh | Rs 10,000–12,000/month | 2 years compulsory government service | Rs 10,00,000 |
| Madhya Pradesh | Rs 10,000–14,000/month | 1 year (UR), 2 years (Reserved) | Rs 10L (UR), Rs 5L (Reserved) |
| Bihar | Rs 10,000–12,000/month | No compulsory service bond | Rs 30L (seat discontinuation only) |
| Assam | Not published | 5 years (including min 1 year rural) | Rs 30,00,000 |
| Chhattisgarh | Not published | 1 year rural service (post-completion) | Rs 25L (UR), Rs 20L (SC/ST/OBC/EWS) |
| Haryana | Not published | 5 years (govt colleges) | Rs 25,77,090 (M) / Rs 23,19,381 (F) — govt; Rs 10L (private) |
| Jharkhand | Not published | Seat-leaving bond (full course) | Emoluments/scholarship drawn + Rs 20,00,000 |
| Goa | Not published | 1 year | Rs 10,00,000 |
| J&K | Not published | No mandatory service bond | — |
Key takeaways for UG (MBBS):
- No post-MBBS service bond: Kerala, West Bengal, Telangana, Andhra Pradesh, Bihar, and J&K have no mandatory government service bond. You only pay a penalty if you discontinue the course itself.
- Delhi is new (2025-26): Delhi introduced a 1-year mandatory service bond from the 2025-26 batch. Previously bond-free.
- Karnataka pays the highest salary during service: Rs 60,000/month during the 1-year rural posting — more than the stipend in most other states. This is separate from the regular internship stipend.
- Tamil Nadu has the longest service period: 5 years rural, though the bond violation penalty (Rs 5L) is among the lowest. Bond breach ≠ mid-course discontinuation — they carry different penalties (Rs 5L vs Rs 10L).
- Haryana has the most unusual structure: Bond penalty is calculated as cost-of-education (Rs 25.7L male / Rs 23.2L female) — not a fixed amount. For private college students, it's Rs 10L + 3-year counselling debarment.
- Assam has the longest bond outside Tamil Nadu: 5 years including 1 year minimum rural. Penalty is Rs 30L — among the highest for UG.
- West Bengal has the highest internship stipend: Rs 30,000–31,000/month. No post-MBBS bond means maximum flexibility after graduation.
- Bond applies only to government seat holders: In Karnataka, the service bond applies only to G-quota (government) seat holders. Private seat holders at the same college are exempt from the bond (but must do the 1-year rural service — that applies to all).
PG (MD/MS) Bond Comparison by State
Stipend figures are verified from actual 2025 allotment data (NeetVantage / MCC allotments). Ranges reflect variation across specialties and seniority year. Bond/service data is from official state DME prospectuses and MCC Annexure C.
| State | Stipend (Govt, 2025) | Bond Amount | Service | Penalty if broken |
|---|---|---|---|---|
| Delhi | Rs 1,00,000–1,44,000/month | Rs 20,00,000 | 1–2 years (varies by institute) | Rs 20,00,000 |
| Uttar Pradesh | Rs 90,000–1,30,000/month | Rs 40,00,000 | 2 years | Rs 40,00,000 |
| Gujarat | Rs 85,000–1,30,000/month | Rs 40,00,000 | 2 years (govt) | Rs 40,00,000 |
| Maharashtra | Rs 80,000–1,06,000/month | Rs 50,00,000 | 1 year | Rs 50,00,000 |
| Bihar | Rs 78,000–1,30,000/month | Rs 40,00,000 | 2 years | Rs 40,00,000 (eased 2025 — stipend repayment removed) |
| Rajasthan | Rs 78,000–1,30,000/month | Up to Rs 1.5 Cr | 2 years | Specialty-based (Sep 2025 order): Rs 50L–1.5 Cr |
| Odisha | Rs 70,000–95,000/month | 2× stipend received | 3 years | Double total stipend paid out |
| Punjab | Rs 68,000–1,30,000/month | Rs 30,00,000 (state) | 2–3 years (state) | Rs 30,00,000 |
| Madhya Pradesh | Rs 70,000–75,000/month | Rs 25,00,000 | 2 years | Rs 25,00,000 |
| Telangana | Rs 65,000–1,30,000/month | Rs 50,00,000 (state govt colleges) | 1 year | Rs 50,00,000 + 3-yr counselling debarment |
| West Bengal | Rs 57,000–1,15,000/month | Rs 10,00,000 | 3 years | Rs 10,00,000 |
| Andhra Pradesh | Rs 60,000–1,06,000/month | Rs 40,00,000 + GST | 1 year (state only) | Rs 40,00,000 + stipend repay |
| Karnataka | Rs 55,000–1,14,000/month | Rs 50,00,000 (state govt colleges) | 3 years (state govt hospital) | Rs 50,00,000 (tiered by specialty) |
| Kerala | Rs 55,000–1,20,000/month | Rs 50,00,000 | 1–2 years | Rs 50,00,000 |
| Tamil Nadu | Rs 50,000–1,15,000/month | Rs 40,00,000 | 2–5 years | Rs 40,00,000 |
Key takeaways:
- Delhi is now the highest-paying state for PG residents: Rs 1–1.44 lakh/month across govt colleges (MAMC, LHMC, GTB). Significantly revised upward in 2025.
- Rajasthan has the highest bond in India: Up to Rs 1.5 crore for sought-after specialties (Dermatology, Radiology, OBG, General Medicine) under Sep 2025 government order.
- Karnataka updated bond to Rs 50L / 3 years: The old Rs 25L/1-year rule is superseded. All KA state govt medical college PG students must serve 3 years in government hospitals; non-compliance costs Rs 50L.
- Telangana bond is Rs 50L at state colleges: NIMS, Kakatiya, Govt MC Suryapet and others. The Rs 20L figure refers to older or deemed-college-specific rules. Plus 3-year counselling debarment on default.
- Odisha uses a unique formula: Penalty = double the total stipend received during PG. At Rs 78K/month for 3 years, that can exceed Rs 55 lakh.
- Bihar recently eased: Service reduced from 3 to 2 years; stipend repayment clause removed. Only bond principal (Rs 40L) applies on break.
- West Bengal bond is among the lowest: Rs 10L, 3-year service. Better stipend than the old table suggested — Rs 57K–1.15L/month across specialties.
The Other Risk Nobody Mentions: Counselling Security Deposits
The service bond is a post-graduation risk. But there is a second, more immediate financial risk during counselling itself: the security deposit you pay to participate in state counselling — and forfeit if you switch colleges in Round 2.
This isn't theoretical. We tracked per-candidate R1 → R2 journeys from official allotment PDFs for four states in 2025. The results:
| State | Candidates tracked | R1→R2 forfeitures | Forfeiture rate | Deposit at risk |
|---|---|---|---|---|
| Karnataka (KEA) | 10,100 | 3,952 | 39.1% | ₹10K (govt) → ₹1L (pvt) |
| Maharashtra (CAP) | 8,922 | 2,971 | 33.3% | ~₹5K–₹1L |
| Tamil Nadu (DME) | 8,265 | 2,038 | 25.4% | ₹30K (SF colleges) |
The pattern across all three states: Government seat holders are more likely to forfeit the deposit than private seat holders — not less. In Karnataka, 52% of govt-seat R1 allottees moved in R2 vs 25% for private. The govt deposit is lower (₹10K vs ₹1L), making upgrade moves financially rational. In Maharashtra, SC category candidates had the highest forfeiture rate (43.8%).
Importantly, this deposit is separate from the service bond and comes before you even join college. Students who participate in both MCC counselling and state counselling face two stacked deposits — and when a better option comes in R2 in one stream, forfeiting the other deposit is often the rational choice.
For full state-wise deposit amounts, forfeiture rules, and UG + PG financial risk breakdown, see the NEET Counselling Financial Risk Report.
How UG Bond Should Affect Your MBBS Choice List
- The bond penalty is part of the total cost of your MBBS. A government seat at Rs 10,000/year fees is not "free" if it comes with a Rs 25–30 lakh bond. Factor the bond penalty into your decision as a deferred liability — especially if you plan private practice immediately after internship.
- Bond-free states give maximum flexibility after MBBS: Kerala, West Bengal, Telangana, Andhra Pradesh, Bihar, and J&K have no mandatory post-MBBS service bond. You pay only if you discontinue the course itself.
- If you plan to do PG right after MBBS: Most states defer or waive the UG bond if you immediately pursue PG in the same state. Confirm this with the specific state DME — rules vary. Tamil Nadu, for example, has formal deferral provisions for immediate PG entrants.
- Karnataka has the most favourable service terms: Bond applies only to G-quota holders, pays Rs 60K/month during service, and is 1 year. If you have a rank for Karnataka govt seats, the bond is low-burden.
- Tamil Nadu's 5-year bond is long but cheaply broken: Rs 5L to exit the bond (not the course). If you plan to practice in a metro, 5 years rural is a real constraint — but the exit cost is manageable vs states like Assam (Rs 30L) or Haryana (Rs 23–25L).
- SC/ST candidates get bond amount reductions in Chhattisgarh (Rs 20L vs Rs 25L UR) and Madhya Pradesh (Rs 5L vs Rs 10L UR). Maharashtra's bond applies only to scholarship recipients. Check your state counselling brochure for your category's specific terms.
- Private college seats are typically bond-exempt for the post-MBBS service obligation — but NOT for the 1-year rural service that several states now mandate for all graduates. Maharashtra (2022), Karnataka, and Odisha require rural service from all graduates regardless of seat type.
- Counselling deposit is a different risk and comes earlier — before you even join. See the section above on security deposit forfeitures. Both can apply to the same student.
Where to Find Bond Details for Your College
We've added stipend and bond information to every college page on Formity. When you view a UG college or PG seat, you'll see the state-level bond details including stipend amount, bond value, service period, and penalty. For detailed state-wise counselling processes, visit our State Counselling Guides.
Official Sources
This data was verified against official government orders and DME prospectuses. Key sources include:
- MAMC Delhi circular on mandatory service bond (2025-26)
- Maharashtra GR No. MED 1021/C.R.128/21/Edu-2 (June 2022)
- Karnataka 2024 Amendment to Compulsory Service Act 2012
- Tamil Nadu DME prospectus 2024-25
- Rajasthan Medical Education Dept order, Sep 1, 2025
- KNRUHS Warangal prospectus 2025-26 (Telangana)
- Bihar cabinet decision on PG bond reduction (2025)
- Punjab Principal Secretary notification, Jun 13, 2025
- DMET Odisha notification, Jan 29, 2024
- Kerala GO MS 56/2012 (DME Kerala)
Use our Rank Predictor to estimate your rank, then check matching colleges with their bond requirements before finalising your choice list. The best time to understand these costs is before counselling begins — not after you've signed the bond.