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 (UG) or residency (PG), how long you must serve in government hospitals after completing your degree, and what penalty you'll pay if you break the bond. Here's a verified, state-by-state breakdown based on official government orders and DME prospectuses.
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) Bond Comparison by State
| State | Internship Stipend | Bond / Service | Penalty |
|---|---|---|---|
| West Bengal | Rs 30,000/month | No mandatory bond | Rs 1L (discontinuation only) |
| Delhi | Rs 23,000/month | 1 year JR service (NEW 2025-26) | Rs 15,00,000 |
| Punjab | Rs 22,000/month | 2 years (state), 1 year (AIQ) | Rs 20,00,000 |
| Gujarat | Rs 21,000/month | 1 year rural service | Rs 20,00,000 |
| Kerala | Rs 20,000/month | No mandatory bond | Rs 10L (discontinuation only) |
| Odisha | Rs 20,000/month | 2 years | Rs 25,00,000 |
| Maharashtra | Rs 18,000/month | 1 year mandatory rural (since 2022) | Rs 10,00,000 |
| Karnataka | Rs 60,000/month (during service) | 1 year rural at PHC/PHU | Rs 15,00,000 |
| Tamil Nadu | Rs 15,000-20,000/month | 5 years rural service | Rs 5,00,000 |
| Rajasthan | Rs 14,000/month | 2 years | Rs 5,00,000 |
| Telangana | Rs 15,000/month | No mandatory bond | Rs 20L (discontinuation only) |
| Andhra Pradesh | Rs 15,000/month | No mandatory bond | Rs 3L + GST (discontinuation) |
| Uttar Pradesh | Rs 10,000-12,000/month | 2 years | Rs 10,00,000 |
| MP | 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 mandatory bond | Rs 30L (discontinuation only) |
Key takeaways:
- No UG bond states: Kerala, West Bengal, Telangana, Andhra Pradesh, and Bihar have NO mandatory post-graduation service bond. You only pay a penalty if you discontinue the course.
- Delhi is NEW: From 2025-26, Delhi introduced a 1-year mandatory service bond (Rs 15 lakh). Previously bond-free.
- Karnataka pays you during service: Rs 60,000/month stipend during the 1-year rural posting.
- Tamil Nadu has the longest service: 5 years rural, but low penalty (Rs 5 lakh).
- West Bengal has the best internship stipend: Rs 30,000/month — highest in India.
PG (MD/MS) Bond Comparison by State
| State | Stipend (Govt) | Bond Amount | Service | Penalty |
|---|---|---|---|---|
| Gujarat | Rs 1,08,000/month | Rs 40,00,000 | 3 years | Rs 40,00,000 |
| UP | Rs 90,000/month | Rs 40,00,000 | 2 years | Rs 40,00,000 |
| Rajasthan | Rs 74,000/month | Up to Rs 1.5 Cr | 2 years | Specialty-based (Sep 2025) |
| MP | Rs 72,000/month | Rs 25,00,000 | 2 years | Rs 25,00,000 |
| Delhi | Rs 70,000-88,000/month | Rs 20,00,000 (NEW) | 1 year SR | Rs 20,00,000 |
| Odisha | Rs 70,000/month | 2x stipend received | 2 years | Double total stipend |
| Maharashtra | Rs 68,000-82,000/month | Rs 50,00,000 | 1 year | Rs 50,00,000 |
| Bihar | Rs 68,000/month | Rs 40,00,000 | 2 years | Rs 40,00,000 (eased 2025) |
| Punjab | Rs 68,000/month | Rs 30,00,000 (state) | 3 years (state) | Rs 30,00,000 |
| Telangana | Rs 58,000-78,000/month | Rs 20,00,000 | 1 year | Rs 50,00,000 default |
| Karnataka | Rs 56,000/month | Rs 25,00,000 (MD/MS) | 1 year | Rs 25,00,000 (tiered) |
| Kerala | Rs 55,000-85,000/month | Rs 50,00,000 | 1 year SR | Rs 50,00,000 |
| AP | Rs 50,000/month | Rs 40,00,000 + GST | 1 year (state only) | Rs 40,00,000 + stipend repay |
| Tamil Nadu | Rs 49,000/month | Rs 40,00,000 | 2 years | Rs 40,00,000 |
| West Bengal | Rs 48,000/month | Rs 30,00,000 | 3 years | Rs 30,00,000 |
Key takeaways:
- Rajasthan has the highest PG bond in India: Up to Rs 1.5 crore for popular specialties (Dermatology, Radiology, OBG, Medicine) since September 2025.
- Gujarat pays the most: Rs 1.08 lakh/month — highest PG stipend in India. But also Rs 40L bond with 3-year service.
- Telangana has a trap: Bond is Rs 20L, but default penalty is Rs 50L + 3-year debarment from counselling. NIMS Hyderabad pays Rs 1.26L/month.
- Odisha uses a unique formula: Penalty = double the total stipend you received during PG. If you earned Rs 70K/month for 3 years, that's Rs 50+ lakh.
- Bihar recently eased: Service reduced from 3 to 2 years; penalty no longer includes stipend recovery (just bond amount).
How This Should Affect Your Choice List
- Factor bond cost into total college cost. A "free" government seat with a Rs 40 lakh bond penalty is not free if you plan to enter private practice immediately after.
- If you want flexibility after MBBS, prioritise bond-free states: Kerala, West Bengal, Telangana, AP, Bihar.
- If you plan to do PG, the bond usually applies separately. Some states defer UG bond if you enter PG in the same state — check state-specific rules.
- SC/ST candidates are often exempt or have reduced bond amounts in several states (Maharashtra, Karnataka, MP). Check your state counselling guide.
- Bond service can be valuable — working in rural government hospitals gives clinical exposure that private hospitals often don't. Many doctors report that their bond service year was their most formative.
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.