Parliament Question: Regulations of Education Fees

Executive Summary This report outlines the regulatory framework for education fees in India as presented in a Rajya Sabha written reply on August 12, 2026. It clarifies the jurisdictional responsibilities between Central and State governments, emphasizing compliance with the RTE Act 2009 and UGC Regulations 2023. Key provisions include mandatory seat reservations for disadvantaged groups and the prohibition of exploitative financial practices by educational institutions.

Key Points / Main Content

Jurisdictional Framework

• Concurrent List Status: Education is a Concurrent List subject, meaning both Central and State governments have roles.
• State Authority: Schools not owned or controlled by the Central Government fall under the jurisdiction of respective State/UT administrations.
• Regulatory Responsibility: State/UT governments are responsible for regulating fees in private schools and taking action against violations.

Statutory Requirements for Schools

• RTE Act 2009 Compliance: Children aged six to fourteen are entitled to free and compulsory elementary education.
• Seat Reservations: Private unaided schools must reserve at least 25% of entry-level seats for children from weaker sections and disadvantaged groups.
• Capitation Fees: Section 13 of the RTE Act explicitly prohibits the collection of any capitation fees.

Higher Education Regulations

• Deemed Universities: These institutions must adhere to the UGC (Institutions deemed to be Universities) Regulations, 2023, regarding fee structures and seat limits.
• Private Universities: Established via State Legislature Acts, these are governed by the norms and rules set by the respective state governments.

CBSE Administrative Rules

• Fee Revision Process: CBSE bye-laws require schools to obtain express approval from the School Management Committee or follow government-prescribed processes for any fee changes.
• Vendor Restrictions: CBSE guidelines prohibit schools from forcing students to purchase uniforms, books, or stationery from specific vendors to promote fair competition and reduce financial burdens.

Impact Analysis

State Governments and UT Administrations Impact They hold the primary legal authority to regulate school management and address grievances regarding private school fees. Action Required Implement and enforce rules to safeguard the interests of students/parents and monitor school compliance with state-specific Acts.

Private Unaided Schools Impact They are subject to strict mandates regarding admissions, fee revisions, and commercial practices. Action Required Must provide 25% reservation for disadvantaged groups and ensure fee revisions are approved by School Management Committees.

Parents and Students Impact They are legally protected from capitation fees and mandatory purchases from school-appointed vendors. Action Required Can claim rights to free elementary education for children aged 6–14 and report schools that compel purchases from specific vendors.

Institutions Deemed to be Universities Impact They lose autonomy over independent fee setting and must align with statutory body mandates. Action Required Ensure fee structures and seat numbers comply with the UGC Regulations, 2023.