School Fee Regulation in India: Policies & Challenges

For school fee regulation, there is no uniform national policy in India. Here are some state-specific and national-level school fee regulatory bodies, policies and education acts.

It is dejected but true that “India lacks a uniform national policy for school fee regulation”.  As a result, many states, including Delhi, Maharashtra and Karnataka have set up state-specific Fee Regulation Committees (FRCs) to regulate the school fee structures. There are also few regulatory bodies and policies in India like the RTE Act 2009, NEP 2020, etc. but they are not implemented in a way it should be to regulate school fee.

All the policies, whether it is state-level committees or central regulatory bodies, aim to prevent unnecessary fee hikes by private schools in India. Their primary purpose also includes transparency in fee structures and balancing school autonomy with affordability so that it will not be exploitative practices for parents.

School Fee Regulation – Key Regulatory Bodies & Policies in India

RTE Act (2009):

The Right to Education Act proposed in the year 2009 mandates free education in recognized schools in India up to class 8. The RTE Act does not regulate private school fees and as a result, free education is just a day dreams for most students belong to below poverty line category.

National Education Policy (NEP) 2020:

The section 8 under the heading “Standard-setting and Accreditation for School Education” of the NEP 2020 clearly cited protecting parents from arbitrary increases in tuition fees. Though it recommends fee transparency, it leaves the school fee regulation policy to state government. As per the section 8.7 of the NEP 2020, this is applicable for public and private schools except that are managed, aided & controlled by the Central Government.

Central Board of Secondary Education (CBSE):

• CBSE mandates transparent disclosure of fee structures on school websites.
• Schools cannot impose arbitrary fees beyond pre-approved components such as tuition, development, and activity fees.
• Annual financial audits ensure compliance with CBSE norms.

State-Level Committees:

In a few Indian states, such as Delhi, Maharashtra, Karnataka, Tamil Nadu, and Uttar Pradesh, there exist school fee regulatory bodies and education acts. For example, Tamil Nadu Private Schools Act, UP Self-Financed Independent Schools Act. In these states, disclosure of a fee breakdown, including tuition, transportation, extracurricular activities, is mandatory. There is also a mandate on upper-cap on annual fee hikes, typically 8–15%, which varies by state. Some states also ban donations or capitation fees and also there is a provision on penalties for non-compliance.

Major Challenges for School Fee Regulation

• National Level Framework: For school fee regulation, there is no uniform national policy in India.
• Legal Loopholes: Schools exploit gaps (e.g., charging “development fees”).
• Weak Implementation: As said earlier, most of the Indian states don’t have a specific policy to regulate school fees. Also, in the states with regulations, don’t have any practical monitoring mechanism.
• Unaffordable Schools: Elite institutions often bypass regulations.

School Fee Regulation: The Bottom Line:

Quote: “Regulation should empower, not strangle—schools need funds to function, but parents deserve fairness.” Regulating school fees in a proper manner remains a critical issue in India due to the absence of a uniform national policy. Parents on the other hand should verify the fee approval certificate of the school and should also demand receipts based on the items so miscellaneous or hidden charges can be avoided.