NEET UG Counselling 2026: Security Deposit Refund Rules & Exit Policies
Navigating the security deposit and refund rules is one of the most critical parts of the NEET UG counselling process. A single mistake in understanding the “Free Exit” or “Forfeiture” rules can lead to a loss of lakhs of rupees or even disqualification from future exams.
1. What is a Security Deposit?
The security deposit is a mandatory amount paid during the registration for choice filling. It acts as a guarantee that the candidate will join the college if a seat is allotted.
- Forfeiture: If you are allotted a seat and do not join after the “Free Exit” period, this amount is not refunded.
- Refund: If you are not allotted any seat, or if you join the college as per rules, the amount is refunded to the original payment source after the counselling ends.
See How The App Helps in NEET Counselling >>
2. Security Deposit Amounts by State/Authority
| Authority / State | Security Deposit Amount |
|---|---|
| MCC, UK, UP, Bihar | ₹2 Lakh (From Round 1) |
| Rajasthan | ₹5 Lakh (From Round 1) |
| TN, Haryana | ₹1 Lakh (From Round 1) |
| KA, Puducherry, Punjab | Applicable After Round 1 |
| Gujarat | ₹10,000 |
| Kerala | ₹5,000 |
| Maharashtra | No Security Deposit |
3. Free Exit Rules: When can you leave?
A “Free Exit” allows a candidate to opt-out of an allotted seat without losing their security deposit.
- Tamil Nadu: Free Exit is available for both Round 1 and Round 2.
- MCC & Other States (UP, HR, BH, UK, RJ, GJ, KL): Free Exit is available for Round 1 only.
Need Help with Counselling without losing Security Deposit?
Get expert guidance for Government, Private, and Deemed Colleges.
4. Discontinuation Penalties (The Danger Zone)
Discontinuing a course after the allowed rounds carries heavy financial and academic penalties:
Forfeiture Warning:
Candidates who fail to join an allotted college after the “Free Exit” period will have their security deposit forfeited immediately.
Round 3 Penalty (R3):
Withdrawing from an allotted seat during Round 3 will attract a specific financial penalty as per the state or authority guidelines.
Post-Round 3 Penalty:
Resigning from a seat after the commencement of Round 3 will require the candidate to pay the full course fee as a penalty and will lead to debarment from the following year’s NEET exam.