Counselling Deposit & Forfeiture Rules: What You Lose If You Don't Join
Last updated: 17 July 2026 · 5 min read
Both MCC and most state counselling authorities require candidates to pay a refundable (or partially refundable) security deposit at registration or choice-filling. Its purpose is to discourage candidates from accepting a seat and then simply not joining, which wastes a seat that could otherwise go to another candidate.
Why the deposit amount differs
The deposit amount is typically set separately for general/open-category and reserved-category candidates (reserved categories are usually charged a lower amount), and the figure itself is decided independently by MCC and by each state for its own counselling — there's no single national figure, and it can change from year to year. Always confirm the current amount from that year's official information bulletin rather than budgeting off an old figure.
How forfeiture typically escalates
The general pattern across most counselling bodies is that forfeiture gets steeper the later in the process you exit: not joining after Round 1 often costs less than resigning after Round 2, which in turn is usually cheaper than withdrawing after the mop-up or stray-vacancy round. The logic is straightforward — the later you drop out, the fewer chances remain to reallocate the seat to someone else, so the deterrent is set higher. Exact percentages and thresholds vary by counselling body and by year.
How to avoid unnecessary forfeiture
Most lost deposits are avoidable with basic planning: only list choices you would genuinely join, decide your freeze/float strategy in advance rather than under deadline pressure, and pay close attention to reporting and document-submission deadlines — many forfeitures happen not from a deliberate decision to withdraw but from simply missing a joining deadline.
Refund timelines
Where a deposit or part of it is refundable, processing can take weeks to a few months after the counselling season closes, and is typically credited back to the same account/method used to pay it. If a refund seems delayed well beyond the stated timeline, the counselling authority's helpline (not a third party) is the right place to follow up.
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FAQ
Is the security deposit the same for AIQ and state counselling?
No — each counselling body sets its own deposit amount independently, so your MCC (AIQ) deposit and your state counselling deposit are very likely different figures, and you may need to pay both if you register for both.
Do I lose the entire deposit if I don't join any seat at all?
Policies vary, but many counselling bodies do treat a complete no-show after being allotted a seat as a full forfeiture case, sometimes with an additional debarment from future rounds that season. Check the specific rule in the current bulletin.
Can reserved-category candidates pay a lower deposit?
In many counselling processes, yes — reserved categories are frequently charged a reduced deposit compared to the general/open category, but confirm the exact figure for the current year and counselling body.