Mandatory Rural Service by Medical Graduates
A statement showing allocation and releases under National Rural Health Mission during the last three years is annexed.
Some instances of misuse of NRHM funds have been reported in some States. However, it would not be correct to infer that funds allocated under the scheme are not properly used in rural areas. Expenditure under this scheme during the last three years i.e. from 2010-11, 2011-12 and 2012-13 is 98 percent, 97 percent and 99 percent respectively.
 The following monitoring mechanisms have already been put in place by Ministry of Health and Family Welfare for adherence to financial procedures and proper financial utilization:
 Submission of quarterly Financial Monitoring Reports by the States;
Annual Statutory Audits;
Concurrent Audits;
Visits by the teams of the Financial Management Group of the Ministry to States for periodical financial reviews.
 In addition to above, the Ministry had requested the Comptroller & Auditor General (CAG) for conducting annual transaction audits of the National Rural Health Mission (NRHM) in all the States from the Financial Year 2011-12 in order to identify the existing gaps, facilitate independent monitoring and timely corrective measures so that a quality and timely audit assessment becomes available to assist the State Governments in undertaking remedial measures and achieving the targets of NRHM.
In order to build financial management capacities in States, the following initiatives have been taken by the Ministry: –
Model Accounting Handbooks for sub-district level has been prepared and circulated,
Detailed operational guidelines on Financial Management under the NRHM;
E-training modules on finance and accounts to help train finance personnel in all States have been disseminated;
The Central Plan Scheme Monitoring Scheme (CPSMS) is under implementation for on line monitoring of funds under NRHM.
The implementation of NRHM in States is reviewed through Common Review Missions (CRMs) and periodical reviews by the Ministry. The deficiencies / shortcomings noticed during the reviews are immediately brought to the notice of the States for remedial action.
Senior officers of the rank of Additional Secretary and Joint Secretary have been visiting the States/UTs to monitor the utilization of allocated funds in the States/ UTs.
The Medical Council of India (MCI), with the previous approval of the Central Government, has amended the Post Graduate Medical Education Regulations to make it mandatory that a candidate seeking admission in Post Graduate course should have served in rural area i.e. Primary Health Centre, for at least one year.
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